Weekly T. Bill averages increase, auction undersubscribed

•  91-day bill average increases for the first time in 22 weeks
• 364-day bill average increase for the first time in 32 weeks
• DOD injects liquidity

By Wealth Trust Securities

The weighted average rates on the 91 day and 364 day maturities increased on a week on week basis for the first time in 22 and 32 weeks respectively at its auctions held yesterday while the auction went undersubscribed after one week of full subscription. 

The increase recorded was 68 and 27 basis points on the 91-day and 364-day maturities respectively to 24.80% and 22.64%. Nevertheless, the weighted average rate on the 182-day maturity remained steady at 24.10%. A total amount of Rs. 99.98 billion was accepted against a total offered amount of Rs.120 billion.

The phase 2 of the auction was opened only for the 91-day and 364-day maturities at its weighted average rates until 3.30 p.m. on today. The secondary bond market remained active yesterday. The liquid maturities of 01.07.25 and two 2027’s (i.e., 01.05.27 & 15.09.27) were seen changing hands at levels of 27.60%, 25.80% to 25.95% and 25.50% to 25.75% respectively.

The total secondary market Treasury bond/bill transacted volume for 10 April 2023 was Rs. 9.45 billion.

In money markets, the net liquidity deficit stood at Rs. 159.87 billion yesterday as an amount of Rs. 0.50 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 15.50% against an amount of Rs. 160.37 billion being withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 16.50%. The weighted average rates on overnight call money and REPO stood at 16.49% and 16.50% respectively.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of a 30-day reverse repo auction for a volume of Rs. 40.00 billion at weighted average rate of 22.28%.

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts traded within the range of Rs. 319.50 to Rs. 320.00 yesterday against its previous day’s range of Rs. 319.50/320.00 and closed the day at Rs. 319.00/320.00.

The total USD/LKR traded volume for 10 April was $ 112.49 million.  

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