Saturday Sep 28, 2024
Saturday Sep 28, 2024
Thursday, 11 January 2024 00:59 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
Yesterday’s weekly Treasury bill auction saw the weighted average rate on the 91-day maturity decline for a seventh consecutive week by 18-basis points to 14.27%, seeing persistent demand with bids exceeding the offered amount. The 182-day maturity followed suit with a seven-basis point drop in yields, also experiencing continue demand. Keeping in line with the declining trajectory of market interest rates, where total bids received exceeded, the total offered amount by 2.65 times. The 364-day maturity remained unchanged at 12.93%, having remained static for three consecutive weeks.
The entire total offered amount of Rs. 100 billion was raised at the first phase of the auction. The second phase of subscription, for only the 364-day maturity will be opened until 4 p.m. on the day before the settlement date (i.e., 11.01.2024) at the weighted average determined at the first phase of the auction. Given below are the details of the first phase of the auction;
Meanwhile, the secondary bond market remained relatively subdued with limited trades seen on the selected maturities of the two 25’s (15.01.25 and 01.07.25), two 27’s (01.05.27 and 15.09.27) and the two 28’s (15.03.28 and 01.07.28) changing hands between the levels of 13.50% to 13.35%, 14.10% and 14.25% to 14.20%.
Meanwhile, in secondary market bills April/May/June 2024 maturities were seen changing hands within the ranges of 14.10% to 13.70%, on considerable volumes. Today 11 January 2024, will see Rs. 120 billion in Treasury Bonds on offer. The available maturities are comprised of Rs. 45 billion of 1 February 2026 maturing bearing a coupon of 9%, Rs. 45 billion from 15 March 2028 maturing bond bearing a coupon of 10.75% and Rs. 30 billion from 15 May 2030 maturing bond with a coupon rate of 11%.
For context, the last Treasury Bond Auction held on 28 December 2023, recorded positive responses, mainly on the short tenures at its first phase. With the entire offered amount on the 2026 and 2028 durations being fully taken up. The 01.02.2026 maturity recorded a weighted average rate of 13.87% while the 15.03.2028 recorded a weighted average rate of 14.21% while the medium tenor 15.05.30 maturity recorded a weighted average of 14.22%. Only an amount of Rs. 150.43 billion was accepted in total against a total offered amount of Rs. 155 billion, leading to the phase two of the auction been opened for the 15.05.30 maturity as it was not fully taken up.
The total secondary market Treasury bond/bill transacted volume for 9 January 2023 was Rs. 15.88 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 9.10% and 9.69% respectively while the net liquidity deficit stood at Rs. 18.32 billion yesterday. The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight auction for Rs. 20.70 billion at the weighted average rates of 9.12%. An amount of Rs. 14.22 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 10% while an amount of Rs. 16.60 billion was withdrawn from Central Banks SDFR (Standard Deposit Facility Rate)
of 9%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day at Rs. 322.80/322.90 against its previous day’s closing level of Rs. 322.50/322.70.
The total USD/LKR traded volume for 9 January was $ 37.46 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
