Subscription at weekly bill auction increases

By Wealth Trust Securities

The total subscription volume at yesterday’s weekly Treasury Bill auction increased to 37.31% against its previous week of 2.24%, but still fell short of its total offered amount for a fourth consecutive week.  

The weighted average rates were registered at the stipulated cut off rates of 4.57%, 4.70% and 4.99% respectively against its previous averages of 4.51%, 4.64% and 4.89%. 

The secondary market bond yields were seen decreasing yesterday as the liquid maturities of 15.11.22, 15.01.23, two 2024s (i.e. 15.06.24 and 15.09.24), 01.02.26 and two 2027s (i.e. 15.08.27 and 15.10.27) hit intraday lows of 5.70%, 5.75%, 6.22%, 6.20%, 6.73% and 7.00% each respectively against its previous day’s closing level of 5.70/75, 5.80/85, 6.25/33, 6.25/30, 6.82/90, 7.02/08 and 7.05/15. 

In secondary bills, 15 January and 10 September 2021 maturities traded at levels of 4.66% to 4.71% and 4.95% respectively pre-auction.

The total secondary market Treasury Bond/Bill transacted volumes for 6 October was Rs. 3.25 billion.   

In the money market, the overnight net liquidity surplus was recorded at Rs. 149.67 billion yesterday as overnight call money and repos registered weighted averages of 4.53% and 4.61% respectively. The Domestic Operations Department of the Central Bank injected an amount of Rs. 10 billion by way of a 7 day reverse repo auction at a weighted average rate of 4.54%.

LKR appreciates further

In the Forex market, USD/LKR rate on spot contracts was seen appreciating further to hit a high of Rs. 184.35 yesterday before closing the day at Rs. 184.30/45 against its previous day’s closing levels of Rs. 184.55/70.

The total USD/LKR traded volume for 6 October was $ 94.95 million.   

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