Weekly T-Bill auction fully subscribed

• Bond yields decrease further

By Wealth Trust Securities

The positive momentum at the weekly Treasury bill auction continued yesterday as well as the total offered amount of Rs. 40 bullion was successfully subscribed with the weighted average on the 364 day maturity dipping by 01 basis point to 4.88%. The weighted average on the 182 day bill decreased the most by 02 basis points to 4.65% while the weighted average on the 91 day bill remained steady at 4.52%. The bids to offer ratio increased to 1.68:1. 

In the secondary bond market, yields dipped further yesterday on the back of sustained buying interest.  The liquid maturities of 2022s (i.e. 15.11.22 and 15.12.22), 2023s (i.e. 15.01.23 and 01.09.23), 15.09.24, 15.08.27 and 15.05.30 were seen decreasing further to intraday lows of 5.45%, 5.48%, 5.49%, 5.75%, 6.01%, 6.83% and 7.25% respectively against its previous day’s closing level of 5.47/52, 5.50/55, 5.52/57, 5.77/85, 6.03/08, 6.88/93 and 7.25/35. In addition, maturities of 15.12.20, 2021s (i.e. 01.05.21 and 01.08.21), 01.10.22, 15.06.24 and 01.07.28 were seen changing hands at levels of 4.53% to 4.56%, 4.73%, 4.64%, 5.47% to 5.50%, 6.02% and 7.03% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 8 September was Rs. 10.09 billion.   

In the money market yesterday, the weighted average rates on overnight call money and Repos stood at 4.52% and 4.55% respectively, as the overnight surplus liquidity was registered at Rs. 187.77 billion.

LKR loses marginally

In the Forex market, USD/LKR rate on spot contracts was seen depreciating marginally yesterday as it was seen closing the day at Rs. 184.35/45 against its previous day’s closing levels of Rs. 184.30/40, subsequent to trading within the range of Rs. 184.25 to Rs. 184.51.

The total USD/LKR traded volume for 8 September was $ 116.60 million.   

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