Saturday Dec 21, 2024
Saturday Dec 21, 2024
Thursday, 19 September 2024 00:06 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weighted average rates were seen increasing substantially at the weekly Treasury bills auction held yesterday, continuing with its recent trend, while the 91-day bill was seen crossing the psychological level of 10.00% for the first time 11 weeks. The increase was led by 182-day bill by 52 basis points to 10.76% followed by the 91-day bill by 50 basis points to 10.49%. However, only a total amount of Rs. 160.99 billion was accepted in total against a total offered amount of Rs. 175 billion. The weighted average rate on the 364-day bill remained steady at 10.07%.
The phase 2 of the auction will be opened for all three maturities until close of business of the day prior to settlement (i.e. 3.30 pm on 19.09.2024).
In the secondary bond market, yields increased as the liquid maturities of 15.02.28 and 15.06.29 hit intraday highs of 13.80% and 13.90% respectively against its previous day’s closing levels of 13.57/60 and 13.70/80. In addition, 2027 maturities (i.e. 01.05.27 & 15.09.27) changed hands at levels of 13.00% to 13.05%. In secondary bills, the latest 182-day bill maturity traded at levels of 11.00% to 11.25%, post-auction.
The total secondary market Treasury bond/bill transacted volume for 13 September 2024 was Rs. 31.25 billion.
In money markets, the overnight money market liquidity turned negative for the first time since 26 March 2024, to record a deficit of Rs. 31.81 billion yesterday. An amount of Rs. 103.93 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.25% against an amount of Rs. 22.94 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.25%. The weighted average rates on overnight Call money and Repo stood at 8.63% and 8.93% respectively.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight and 7-day reverse repo auctions for a total volume of Rs.112.80 billion at weighted average rates of 8.59% and 8.96% respectively.
Forex Market
In the Forex market, the USD/LKR on spot contracts depreciated yesterday to close the day at Rs. 303.75/303.85 against its previous day’s closing level of Rs. 302.25/302.80.
The total USD/LKR traded volume for 13 September was $ 84.06 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
