Weekly T. Bill averages continue to tumble: Rs. 120 b fully subscribed

Thursday, 16 March 2023 00:54 - - {{hitsCtrl.values.hits}}

91-day bill average dips below 28.00% for first time in 32 weeks
Bond yields dip marginally
Rupee steady

By Wealth Trust Securities

The steep declining trend at the weekly Treasury bill auction was seen continuing at its auctions held yesterday, with averages dipping a minimum 43 basis points and above. The 91-day bill dipped the most by 81 basis points to 27.94%, a level last seen at its auction conducted on the 3 August 2022. This was followed by the 182-day bill by 43 basis points to 27.34% and the 364-day bill by 51 basis points to 25.92%. The total offered amount of Rs. 120 billion was fully taken up as its bid to offer ratio stood at 2.42:1.

The Phase 2 of the auction will be opened for all three maturities at its weighted average yields, until close of business today. (i.e., 3.30 p.m. on 16.03.2023).

The secondary market bond activity picked up yesterday following the auction outcome, as yields dipped marginally. The 01.07.25 maturity was seen changing hands within an intraday high of 32% to a low of 31.10% while 15.01.25 and 01.06.25 changed hands at levels of 31.48% to 31.50% and 31.10% to 31.55% respectively. In addition, 15.09.27 was traded within the range of 28.20% to 28.40%.

In secondary bills, June 23 maturities changed hands from a high of 28.00% to a low of 27.00% while September was traded within 27.00% to 27.25%.

The total secondary market Treasury bond/bill transacted volume for 14th March 2023 was Rs. 24.20 billion.

In money markets, the net liquidity deficit stood at Rs. 101.04 billion yesterday as an amount of Rs. 26.44 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 15.50% against an amount of Rs. 127.48 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 16.50%. The weighted average rates on overnight Call money and REPO stood at 16.50% each.

Forex Market

In the Forex market, the USD/LKR or rupee on its spot contracts was seen traded within the range of Rs. 337.35 to Rs. 338.00 yesterday.

The total USD/LKR traded volume for 14 March was $ 72.90 million.

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