Weekly T-Bill averages record steep declines

• Secondary bond market yields decrease; activity increases

By Wealth Trust Securities

The weekly Treasury bill weighted average rates were seen continuing its bullish momentum, recording steep dips across all three maturities for a second consecutive week at its auctions held yesterday. 

The market favourite 91-day bill maturity recorded the highest drop of 90 basis points to 22.75% while the 182-day and 364-day bills registered drops of 62 and 55 basis points respectively to 23.60% and 23.75%.  The total offered volume was fully accepted at the auction for a second consecutive week, totalling Rs. 83 billion this week. The bids to offer ratio increased to 2.93:1. 

Activity in the secondary bond market increased yesterday as the maturities of 01.06.25, 01.05.27 and 15.01.28 changed hands at a low of 21.20%, 20.50% and 21.20% respectively against its opening highs of 21.80%, 21.25% and 21.50%.  In secondary bills, the latest 91- and 364-day maturities traded at levels of 22.00% and 23.10%, post auction.

The total secondary market Treasury bond/bill transacted volume for 31 May 2022 was Rs. 4.96 billion.   

In money markets, the net liquidity deficit stood at Rs. 535.47 billion yesterday as an amount of Rs. 196.97 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 13.50% against an amount of Rs. 732.44 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 14.50%. The weighted average rates on overnight Call money and REPO stood at 14.50% each.

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts depreciated to Rs. 360.1114 yesterday against its previous day’s Rs. 360.76.

The total USD/LKR traded volume for 31 May 2022 was $ 71.00 million.  

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