Subscription at weekly T-bill auction increases to 87%

• Secondary bond market yields remain mostly unchanged

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday saw a strong subscription level of 87.03% of its total offered amount, derived by continued demand for the 91 day bill. A total amount of Rs. 40.03 billion was accepted against its total offered amount of Rs. 46.0 billion, with the 91 day bill representing 90.23% of the total accepted amount. 

The weighted average yields increased across the board with the 364 day maturity recording an increase of 3 basis points to 5.28% followed by the 91 day and 182 day maturities by 02 and 01 basis point respectively to 5.24% each. The bids to offer ratio increased to a three week high of 1.65:1. 

In the secondary bond market, yields remained mostly unchanged in moderate trading. Trades were seen on the maturities of 15.12.21, 01.09.23, 01.10.23, 15.12.24 and 15.10.25 at levels of 5.25%, 6.10% to 6.17%, 6.20%, 6.93% and 7.24% respectively.

The total secondary market Treasury bond/bill transacted volume for 3 August was Rs. 4.24 billion.   

In money markets, the net liquidity surplus increased further to Rs. 58.47 billion yesterday with an amount of Rs. 148.27 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 89.80 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo decreased marginally to 5.09% and 5.13% respectively.

USD/LKR   

In Forex markets, the overall market continued to remain inactive yesterday.

The total USD/LKR traded volume for 3 August was $ 25.10 million.   

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