Weekly T-bill rates decrease for third consecutive week

• Inflation eases for a 2nd consecutive month

By Wealth Trust Securities

The Colombo Consumer Price Index (CCPI) or inflation for the month of November was seen decreasing to 61.0% on its point to point as against 66.0% recorded in October while its annualised rate increased to 42.6% from 38.3%.

The weekly weighted average rates continued to dip across the board at its Treasury bill auction conducted yesterday, repeating its trend from the previous two weeks. It was the 182-day bill which reflected the highest decrease of 18 basis points to 32.27% followed by the 364-day bill by 6 basis points to 29.46% and the 91-day bill by just 01 basis point to 32.91%. The total offered amount of Rs. 80 billion was fully accepted at the phase 1 level of the auction while the phase 2 will be opened for the 182-day and 364-day maturities at its weighted average rates until close of business on the day prior to settlement (i.e., 3:30 p.m. on 01.12.22). 

In the secondary bond market, activity continued as the maturities of 01.05.24, 01.07.25 and 15.05.26 changing hands at intraday lows of 32.50%, 30.85% and 31.25% respectively.

The total secondary market Treasury bond/bill transacted volume for 29 November was Rs. 16.24 billion.  

In money markets, the net liquidity deficit stood at Rs. 232.51 billion yesterday as an amount of Rs. 333.23 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 565.78 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 15.50%. The weighted average rate on overnight Call money and repo were registered at 15.50% each.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 363.1875 yesterday.

The total USD/LKR traded volume for 29 November was $ 74.75 million. 

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