Weekly averages continue to dip; Auction undersubscribed once again

• Bond market activity moderates Rupee appreciates 

The weekly Treasury bill averages continued to decline at its auctions conducted yesterday. The market favorite 91-day bill maturity recorded a dip of 11 basis points to 29.72% while the 364-day bill registered a dip of 04 basis points to 27.67%. The weighted average rate on the 182-day remained steady at 28.67%. However, the auction went undersubscribed at its 1st phase once again as only Rs. 53.50 billion was accepted in total against a total offered volume of Rs. 75 billion. Phase 2 of the auction will be opened for all three maturities at its weighted average yields, until close of business today. (i.e., 3.30 pm on 13.02.2023). Given below are the details of the auction,

Meanwhile, trading activity in the secondary bond market moderated yesterday. The liquid maturities of 01.07.25, 15.05.26 and two 2027’s (i.e., 01.05.27 & 15.09.27) changed hands at levels of 32.10%, 29.20% and 28.95% to 29.00% respectively in addition to the maturities of 01.05.24, 2025’s (i.e., 15.01.25 & 01.06.25), 15.01.28 and 01.07.32 at levels of 31.50%, 32.00% to 32.50%, 27.90% and 25.00% to 25.25% respectively as well.

The total secondary market Treasury bond/bill transacted volume for 21 February 2023 was Rs. 13.65 billion.   

In money markets, the overnight net liquidity deficit was Rs. 145.15 billion yesterday with the said amount being withdrawn from Central Banks SLFR (Standard Lending Facility Rate) at 15.50%. The weighted average rates of overnight call money and REPO was at 15.50% each.

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts appreciated yesterday to Rs. 361.6615 against its previous day’s closing level of Rs.361.92.

The total USD/LKR traded volume for 21 February was $ 71.00 million.  

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