Weekly Treasury bill auction accepted volume drops to 40%

Thursday, 20 July 2023 03:01 - - {{hitsCtrl.values.hits}}

Averages increase for a second consecutive week
Rupee dip continues

By Wealth Trust Securities

The total accepted volume at yesterday’s Treasury bill auction decreased further to 39.81% of its total offered amount in comparison to its previous week›s figure of 62.29%. Only Rs.63.69 billion was successfully taken up in total against its total offered amount of Rs.160 billion. The weighted average rates increased across the board for a second consecutive week by 91, 82 and 31 basis points on the 91-day, 182-day and 364-day maturities respectively to 19.99%, 17.77% and 14.35%.

The phase 2 of the auction will be opened for all three maturities at its weighted average rates until close of business on the day prior to settlement (i.e., 4.00 pm on 20.07.23).

In secondary bond markets, the liquid maturities of 15.05.26, 15.09.27, 01.05.28 and 15.05.30 changed hands at levels of 15.50% to 15.53, 15.25% to 15.60%, 15.07% to 15.15% and 14.80% to 14.95% respectively.

The total secondary market Treasury bond/bill transacted volume for 18th July 2023 was Rs.14.60 billion.

In money markets, the weighted average rates on overnight call money and REPO stood at 11.98% and 12.00% respectively while the net liquidity deficit was recorded at Rs.174.68 billion yesterday. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight and 7-day reverse repo auctions for a total volume of Rs.121.35 billion at weighted average rates of 11.74% and 12.00% respectively while an amount of Rs.88.27 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00% against an amount of Rs.34.95 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 11.00%.

Forex Market

In the Forex market, the USD/LKR spot contracts closed the day at Rs.323.50/325.00 yesterday against its previous day’s closing level of Rs.322.50/323.50, subsequent to trading within the range of Rs.324.00 to Rs.324.50.

The total USD/LKR traded volume for 18th July was $ 33.55 million.

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