Weekly Treasury bill averages decrease; auction fully subscribed

By Wealth Trust Securities

The Treasury bill weighted average rates were seen decreasing across board for the first time in five weeks at its auctions held yesterday while the auction was fully subscribed for the first time in five weeks as well.

The decline was 61, 104 and 05 basis points on the 91 day, 182 day and 364 maturities respectively while the bids to offer ratio increased to a seven week high of 2.90:1. The phase 2 of the auction will be opened for the 182 day and 364 day maturities at its weighted averages until close of business of the day prior to settlement (i.e. 3:30 p.m. on 21 July). 

Meanwhile, activity in the secondary bond market came to a halt yesterday while the October 2022, January 2023 and July 2023 bill maturities were seen changing hands at lows of 29.75% 29.50% and 28.60% respectively, following the auction outcome.

The total secondary market Treasury bond/bill transacted volume for 19 July 2022 was Rs. 3.27 billion.   

In money markets, the net liquidity deficit increased to Rs. 462.36 billion yesterday as an amount of Rs. 302.28 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 14.50% against an amount of Rs. 764.64 billion withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 15.50%. The weighted average rate on REPO stood at 15.50% while no Call money transactions were witnessed.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts depreciated further to Rs. 361.87 yesterday against its previous day’s closing level of Rs. 361.1657.

The total USD/LKR traded volume for 19 July was $ 176.03 million.  

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