Subscription at weekly T-Bill auction reduces considerably

• Dull sentiment in secondary bond market continues

By Wealth Trust Securities

The subscription volume at the weekly Treasury bill auction decreased considerably yesterday to an eighteen week low, as only an amount of Rs. 11.55 billion was accepted in total against its total offered amount of Rs. 45 billion. 

The weighted average rates on the 91 day and 182 day maturities increased by 03 and 01 basis points respectively while the weighted average rate on the 364 day maturity remained steady at 5.11%. The auction was undersubscribed for a third consecutive week as the bids to offer ratio decreased to 18 weeks low of 1.19:1. 

The dull sentiment witnessed in the secondary bond market continued yesterday as well as most market participants persisted to be on the side lines. Trades were witnessed within a thin range on the maturities of 2022’s (i.e. 15.11.22 and 15.12.22), 15.05.23 and 2024’s (i.e. 01.01.24, 15.09.24 and 01.12.24) at levels of 5.80%, 5.81% to 5.85%, 6.20%, 6.40%, 6.55% to 6.60% and 6.64% to 6.68% respectively.

The total secondary market Treasury bond/bill transacted volume for 23 March was Rs. 5.09 billion.   

In money markets, the weighted average rates on call money and repo stood at 4.58% and 4.61% respectively as net liquidity surplus stood at Rs. 102.11 billion yesterday. An amount of Rs. 139.21 billion was deposited at Central Banks SDFR of 4.50% while an amount of Rs. 37.11 billion was withdrawn from the Central Banks SLFR of 5.50%.

USD/LKR 

In the Forex market, USD/LKR rate on the more active one week forward contracts were seen closing the day at Rs. 199.00/199.50 in comparison to its previous day’s closing level of Rs. 198.50/199.00.

The total USD/LKR traded volume for 23 March was $ 93.48 million.   

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)