Weekly averages broadly steady

• Uptick in bond yields continue; rupee appreciates

By Wealth Trust Securities

The weighted average rates at yesterday’s Treasury bills auction remained broadly steady for the first time in 5 weeks at 25.80%, 25.42% and 23.14% on the 91-day, 182-day and 364-day maturities respectively. The 91-day bill encountered a drop of 02 basis points while the other two maturities remained steady.

In total an amount of Rs. 132.42 billion was successfully taken up against its offered amount of Rs. 140 billion while phase 2 of the auction will be opened for all three maturities at its weighted average rates until close of business on the day prior to settlement (i.e., 3.30 p.m. on 11.05.23). 

The uptick in secondary bond market yields continued yesterday as the maturities of 15.05.26, two 2027’s (i.e., 01.05.27 and 15.09.27) and 01.07.32 hit intraday highs of 30.50%, 28.85% and 28.60% respectively against its previous day’s closing level of 30.10/25, 28.30/60, 28.25/50 and 23.00/00.

The total secondary market Treasury bond/bill transacted volume for 9 May was Rs. 6.71 billion.

In money markets, the weighted average rates on overnight call money and REPO stood at 16.48% and 16.50% respectively while the net liquidity deficit stood at Rs. 121.31 billion yesterday.

The DOD (Domestic Operations Department) of the Central Bank injected liquidity by way of a 7-day reverse repo auction for a volume of Rs. 23 billion at a weighted average rate of 16.50%.

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts appreciated yesterday to close the day at Rs. 315.50/316.00 against its previous day’s closing level of Rs. 317.90/318.10, subsequent to trading at a high of Rs. 315.90 to a low of Rs. 317.90.

The total USD/LKR traded volume for 9 May was $ 184.05 million. 

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