Uptick in weekly averages continue

Thursday, 18 March 2021 02:43 - - {{hitsCtrl.values.hits}}

Secondary bond market activity remains low

By Wealth Trust Securities

The weekly Treasury bill auction was seen continuing its upward trend in weighted average rates for a seventh consecutive week at its auction held yesterday, as only an amount of Rs. 25.82 billion was accepted in total against its total offered amount of Rs. 45 billion. The shortest 91-day maturity continued to dominate the auction with a high subscription of over Rs. 16 billion against its offered amount of Rs. 10 billion, while the 182-day maturity succeeded in attracting Rs. 8.95 billion against its offered amount of Rs. 10 billion. However, demand for the 364-day bill remained low as only an amount of Rs. 657 million was accepted against its offered amount of Rs. 25 billion.

The weighted average rates increased by two and one basis point each on the 91-day, 182-day and 364-day maturities, reflecting an accumulated increase of 31, 29 and nine basis points respectively over the past seven weeks. The bids-to-offer ratio stood at 1.46:1.

Trading activity in the secondary bond market remained low yesterday with only maturities of 15.12.22, 15.03.23, 01.01.24 and 01.05.29 changing hands at levels of 5.85%, 6.05% to 6.07% and 6.35% to 6.38% respectively.

In money markets, surplus liquidity stood at Rs. 140.03 billion yesterday while the weighted average rates on call money and repo remained steady at 4.55% and 4.57% respectively.

The total secondary market Treasury bond/bill transacted volume for 16 March was Rs. 4.92 billion.

Rupee depreciates further

In the Forex market, USD/LKR rate on the more active one-week forward contracts were seen depreciating further to close the day at Rs. 201.50/203.00 in comparison to its previous day’s closing level of Rs. 199.50/200.50.

The total USD/LKR traded volume for 16 March was $ 111.23 million.

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