T-Bill auction undersubscribed for fourth straight week; rates remain broadly steady

Thursday, 17 April 2025 02:40 - - {{hitsCtrl.values.hits}}

Secondary Bond market yields ease
Rupee depreciates marginally

The weekly Treasury Bill auction went undersubscribed at its first phase for a fourth consecutive week, with only 71.32% or Rs. 62.40 billion of the total Rs. 87.50 billion on offer accepted. This was despite total bids received exceeding the offered amount by 2.44 times.

The auction saw weighted average yield rates remained broadly steady. Accordingly, the weighted average rate on the 91-day tenor was recorded unchanged at 7.59% and the 364-day tenor at 8.31%. However, the weighted average rate on the 182-day tenor increased by 05 basis points to 7.96%

91% or majority of the funds raised at the auction were from the 182-day maturity. The other two tenors only contributed less than 10% of the funds raised.

The second phase of subscription for the auction will be opened for the 91- and 364-day ISINs at the weighted average rates until close of business of the day prior to settlement (i.e., 3 p.m. on 17.04.2025).

Meanwhile, the Secondary Bond market saw yields edge down marginally yesterday on the back of renewed buying interest centred predominantly on 2028-2029 tenors. Market activity and transaction volumes were seen at decent levels despite the holiday lull environment. The 15.02.28 and 15.03.28 maturities saw yields move down the range of 10.05%-9.98%%. The 01.07.28 maturity was seen trading at the rate of 10.15%. The 15.09.29 and 15.12.29 maturity traded at the rates of 10.50% and 10.58%-10.56%.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.96% and 7.95% respectively.

The net liquidity surplus stood at Rs. 56.90 billion yesterday. Rs. 26.16 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 83.06 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating marginally to Rs. 298.65/298.80 as against its previous day’s closing level of Rs. 298.10/298.30.

The total USD/LKR traded volume for 11 April was $ 100.70 million.

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