Weekly Treasury bill averages continue positive momentum

• Bonds yields decline as activity picks up

By Wealth Trust Securities

The weekly Treasury bill weighted average rates continued to decrease for a third consecutive week at its auctions held yesterday. It was the 91 day bill which reflected the sharpest decrease of 114 basis points (1.14%) to 27.72% followed by the 364 day bill by 34 basis points to 29.19% and the 182 day bill by 27 basis points to 28.97%. 

The total offered amount was successfully accepted at the auction while the phase 2 of the auction will be opened for the 182 day and 364 day maturities at its weighted average rates until close of the business of the day prior to settlement (i.e. 3.30 pm on 04.08.22). 

Meanwhile, activity in the secondary bond market picked up further yesterday as yields declined. The 01.06.25 maturity was the most sorted duration as it was seen hitting an intraday low of 27.68% against its previous day’s closing of 27.90/95.

The total secondary market Treasury bond/bill transacted volume for 02nd August 2022 was Rs. 2.13 billion.   

In money markets, the weighted average rates on overnight Call money and REPO stood at 15.50% each while the net liquidity deficit stood at Rs. 462.72 billion yesterday. An amount of Rs. 303.85 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 14.50% while an amount of Rs. 766.57 billion was withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 15.50%.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts was at Rs. 360.9254 yesterday against its previous day’s closing level of Rs. 361.00.

The total USD/LKR traded volume for 2 August was $ 135.25 million.  

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