Friday Nov 29, 2024
Friday Nov 29, 2024
Thursday, 4 January 2024 02:25 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The first Treasury bill auction conducted yesterday for the year 2024 saw the weighted average rate on the 91-day maturity decline by six basis points to 14.45%, seeing strong demand with bids exceeding the offered amount.
The 182-day maturity also saw impressive demand with the bids received being Rs. 122.80 billion versus an offered amount of only Rs. 70 billion, however weighted average yield remain unchanged.
The 364-day maturity also remained unchanged at 12.93%.
An amount of Rs. 155.18 billion or 96.99% of the total offered amount of Rs. 160 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., 04.01.2024) at the weighted average determined at the first phase of the auction.
The secondary bond market saw activity pick up with liquid maturities of the three 26’s (01.02.26, 15.05.26 and 01.06.26), two 28’s (15.03.28, 01.07.28), and 15.05.30 changing hands at levels of 14% to 13.85%, 14.20% to 14.15% and 14.20% respectively.
In secondary market bills March/June/July 2024 maturities were seen changing hands within the ranges of 14.15% to 14%.
The total secondary market Treasury bond/bill transacted volume for 2 January 2023 was Rs. 17.02 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 9.12% and 10% respectively while the net liquidity deficit stood at Rs. 121.59 billion yesterday.
The DOD (Domestic Operations Department) of the Central Bank injected liquidity by way of an overnight auction for Rs. 70.90 billion at the weighted average rates of 9.07%.
An amount of Rs. 50.73 billion was withdrawn from the Central Banks SLFR (Standard Lending Facility Rate) of 10% while an amount of Rs. 0.04 billion was withdrawn from the Central Banks SDFR (Standard Deposit Facility Rate) of 9%.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. 322.60/322.90 against its previous day’s closing level of Rs. 321.60/322.00.
The total USD/LKR traded volume for 2 January was $ 109.25 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
