Treasury Bill auction total accepted amount dips week-on-week

• Bond market remains dull ahead of T-bond auctions

By Wealth Trust Securities

The total accepted amount at yesterday’s weekly Treasury bill auction was seen decreasing to Rs. 29.89 billion in comparison to Rs. 36.12 billion accepted the previous week and against a total offered amount of Rs. 45 billion each week. The weighted average rate on the 364-day maturity was recorded at its cut-off rate of 5.18%, while the weighted average rate on 182-day maturity increased by one basis point to 5.14%. The 91-day maturity continued to dominate the auction, representing 80.57% of the total accepted amount with its weighted average rate too increasing by one basis point to 5.11%. The bids-to-offer ratio stood at 1.43:1.

The secondary bond and bill market remained dull yesterday ahead of today’s T-bond auctions. In very limited trades, 01.08.26 and 15.10.27 maturities were traded at levels of 7.75% and 7.83% to 7.88% respectively.

The T-Bond auctions will see in total an amount of Rs. 80 billion on offer in lieu of a Rs. 75.78 billion maturity due on 1 May, which will consist of Rs. 30 billion of  15.11.2023, Rs. 25 billion each on 15.01.2026 and 01.10.2032. Maximum yield rates for acceptance were published as 6.50%, 7.25% and 8.45% respectively. The weighted average yields at the bond auctions conducted on 9 April for the maturities of 01.09.2023 and 01.07.2028 were recorded at 6.30% and 7.70% respectively.

The total secondary market Treasury bond/bill transacted volume for 27 April was Rs. 1.10 billion.   

In money markets, surplus liquidity stood at Rs. 150.96 billion yesterday, while the weighted average rates on call money and repo remained mostly unchanged at 4.67% and 4.68% respectively.

USD/LKR 

In the Forex market, USD/LKR rate one-month forward contracts remained more active as it was seen closing the day at levels of Rs. 200/205 against its previous day’s closing levels of Rs. 200/203.

The total USD/LKR traded volume for 27 April was $ 53.55 million.   

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