Weekly auction accepted amount dips to 4-week low

By Wealth Trust Securities

The total accepted volume at the weekly bill auction was seen dipping to a four-week low of 72.10% of its total offered amount in comparison to the previous week’s 100% full subscription. The auction conducted yesterday continued to see a considerable demand for the 91-day bill as Rs. 46.03 billion was accepted against its offered amount of Rs. 24 billion, and against a total accepted amount of Rs. 46.14 billion. 

The weighted average rates on the 91-day and 364-day maturities reflected increases of one basis point each to 5.22% and 5.25%, while no successful bids were recorded on the 182-day maturity for the first time since 13 November 2019. The bids to offer ratio decreased to 1.59:1. 

The secondary bond market commenced the fresh trading week on a dull note as activity remained rather moderate. Limited trades were witnessed on the maturities of 15.05.23 and 15.11.23 at levels of 5.95% and 6.27% respectively.

The total secondary market Treasury bond/bill transacted volume for 16 July 2021 was Rs. 8.95 billion.   

In money markets, the overnight net liquidity surplus was seen decreasing further yesterday to Rs. 53.59 billion as an amount of Rs. 107.61 billion was deposited at Central Banks SLDR of 4.50% against an amount of Rs. 54.02 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on overnight call money and repo remained steady at 5%.

 USD/LKR   

In Forex markets, the overall market continued to remain inactive yesterday.

The total USD/LKR traded volume for 16 July 2021 was $ 74 million.   

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