Monday Oct 28, 2024
FT
Monday Oct 28, 2024
Thursday, 24 October 2024 00:10 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury bill auction conducted yesterday, weighted average rates remained unchanged, following four consecutive weeks of decline. Accordingly, the weighted average rate for the 91-day tenor was registered at 9.32%, the 182-day at 9.65% and the 364-day tenor at 9.95%. Total bids received exceeded the offered amount by 2.32 times, and the entire Rs. 125.00 billion on offer was successfully raised at the 1st phase.
The 2nd phase of subscription for the auction will be opened for the 182-day and 364-day tenors at the weighted average rates until close of business of the day prior to settlement (i.e., 4.00 p.m. on 24.10.2024). Given below are the details of the auction;
Meanwhile, the secondary bond market yesterday started off bullish and saw yields initially dip down. However, a reversal at the latter part of the day on profit-taking saw rates close broadly steady. The market remained active with healthy volumes transacted.
Accordingly, the 15.12.27 maturity traded up from an intraday low of 11.35% to a high of 11.45%. The 15.02.28 and the 15.03.28 maturity saw yields increase from a low of 11.70% to a high of 11.75% intraday. The 01.07.28 maturity changed hands within the range of 11.80%-11.85%. The 15.06.29 maturity was observed trading within the range of 12.08%-12.05%. Additionally, trades were observed on the medium tenor 15.05.30 maturity within the range of 12.15%-12.22%.
Meanwhile, in secondary market bills trades were observed on December 2024, February and March 2025 maturities at the rates of 9.25%, 9.45% and 9.71%-9.60% respectively as a precursor to the bill auction.
The upcoming Treasury bond auction due next Monday, 28 October will have on offer Rs. 20.00 billion from 15 October 2028 maturity bearing a coupon of 11.00% (a new issuance) and Rs. 12.50 billion from a 01 June 2033 maturity bearing a coupon rate of 09.00%.
The total secondary market Treasury bond/bill transacted volume for 22nd October was Rs. 13.99 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.57% and 8.71% respectively.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 40.00 billion at the weighted average rate of 8.49%.
The net liquidity surplus stood at Rs. 144.13 billion yesterday. An amount of Rs. 0.06 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 9.25% as against an amount of Rs. 184.19 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating marginally to Rs. 293.45/293.55 against its previous day’s closing level of Rs. 293.23/293.27.
The total USD/LKR traded volume for 22 October was $ 60.68 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
