Weekly auction fully subscribed for first time in 11 weeks

• Bond yields dip
• Rupee appreciates marginally

By Wealth Trust Securities

The weekly Treasury bill auction saw its total offered amount fully subscribed for the first time in 11 weeks yesterday as its bids to offer ratio increased to a 20 week high of 2.16:1 as well. The exact offered amount on each maturity was fully accepted as its weighted averages were recorded at its given cut off rates. 

The activity in the secondary bond market picked up once again yesterday as buying interest saw yields dip. Liquidity surrounded the maturities of 2022’s (01.10.22, 01.11.22 and 15.12.22), 2023’s (15.01.23, 01.10.23 and 15.12.23), 15.09.24, 01.05.25 and 01.02.26 as it was seen changing hands at levels of 5.60%, 5.58%, 5.60%, 5.60% to 5.64%, 5.89% to 5.91%, 6.00% to 6.03%, 6.36% to 6.38%, 6.53% to 6.55% and 6.69% respectively. In secondary bills, September and August 2021 maturities changed hands at levels of 4.75% and 4.80% respectively.

The total secondary market Treasury bond/bill transacted volumes for 5 January was Rs.3.15 billion.    The overnight surplus liquidity continued to remain high at Rs.244.45 billion yesterday while call money and repo remained steady to average 4.54% and 4.55% respectively.

Rupee appreciates marginally

The one month forward contract continued to be the active USD/LKR quote yesterday as it gained to close the day at Rs.190.75/191.25 against its previous day’s closing of Rs.190.00/192.50 on the back of selling interest by banks.

The total USD/LKR traded volume for 5 January was $ 64.05 million.   

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