Weekly Treasury bill averages decrease

• Bond market remains active

By Wealth Trust Securities

The Treasury bill weighted average rates were seen decreasing across board for the first time in 3 weeks at its auctions held yesterday. 

The decline was 03, 08 and 06 basis points on the 91-day, 182-day and 364-day maturities respectively.                                                                                                                                    A total amount Rs.155.34 billion was accepted at the 1st phase of the auction against a total offered volume of Rs.170 billion.                                                                                                                                          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., 4.00 pm on 27.07.2023). 

Given below are the details of the auction,

Meanwhile, the secondary bond market remained active yesterday as the liquid maturities of two 2025’s (i.e., 01.06.25 & 01.07.25), 15.05.26, 15.09.27, 01.05.28 and 15.05.30 changing hands at levels of 15.80 to 15.90, 15.75% to 15.81%, 15.30% to 15.48%, 15.20% to 15.26%, 14.65% to 14.81% and 14.40% to 14.55% respectively. In addition, 01.07.32 maturity changed hands at a level of 14.20% as well. The total secondary market Treasury bond/bill transacted volume for 25th July 2023 was Rs.11.61 billion.    

In money markets, 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of Rs.75.10 billion at weighted average rates of 11.51% and 12.00% respectively while an amount of Rs.95.98 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. The net liquidity deficit stood at Rs.170.92 billion yesterday.The weighted average rates on overnight call money and repo were registered at 11.50% and 12.00% respectively.

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts traded within the range of Rs.329.00 to Rs.331.75 yesterday before closing the day at Rs.329.25/329.50.  The total USD/LKR traded volume for 25 July was US $ 48.88 million. 

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