Weekly T-Bill auction undersubscribed for the 10th consecutive week

• Activity in the secondary bond market remains moderate

By Wealth Trust Securities

The weekly Treasury bill auction was undersubscribed yet again with the total accepted amount falling short of the total offered amount by Rs.21.23 billion or 53.08%. The weighted average rates of 4.69%, 4.80% and 5.05% were as per the stipulated cutoff rates for the 91, 182 and 364 day maturities, while the bids to offer ratio decreased to1.33:1.

In the secondary bond market, yields decreased marginally yesterday, on the back of moderate activity. Limited trades of the 01.10.23, 01.12.24, 01.02.26 and 15.08.27 maturities took place at levels of 5.97% to 5.98%, 6.48% to 6.49%, 6.75% and 7.19% respectively against its previous day’s closing levels of 6.00/04, 6.47/55, 6.75/85 and 7.15/23. In the secondary bill market, February 2021 maturities changed hands at 4.67%.

The total secondary market Treasury bond/bill transacted volumes for 28th December 2020 was Rs.3.80 billion.    In the money market, the overnight surplus liquidity continued to remain at a high of Rs.232.30 billion, while the call money and repo rates remained mostly unchanged to average 4.54% and 4.59% respectively.

Rupee remains mostly unchanged

The USD/LKR rate on spot next contracts was seen closing the day broadly unchanged at Rs.187.50/50 yesterday on the back of an equilibrium market. The total USD/LKR traded volume for 28th December 2020 was US $ 36.00 million.   

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