Weekly averages continue to leapfrog

• 91 day bill average crosses 10.00% for the first time since November 2018
• Total offered amount accepted after a lapse of two weeks

By Wealth Trust Securities

The 91 day bill weighted average was seen jumping above the 10.00% physiological level for the first time since November 2018 while the recorded weighted average was over a nine year high. The week on week increase was led by the 91 day bill by 96 basis points followed by the 182 day and 364 day bills by 60 and 71 basis points respectively registering weighted average rates of 10.29%, 10.48% and 10.66%. The weighted averages on 182 day and 364 day maturities were seen crossing 10.00% for the first time since December 2018 and April 2019 respectively.

The 91 day bill continued to dominate the auction as it represented 98.96% of the total accepted amount of Rs. 60 billion while the total offered amount was fully accepted for the first time in three weeks. 

The secondary bond market continued to be inactive yesterday.

The total secondary market Treasury bond/bill transacted volume for 08 March was Rs. 1.22 billion.   

In money markets, the weighted average rates on overnight Call money and REPO was at 7.48% and 7.50% respectively as an amount of Rs. 678.16 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 7.50%. 

The net liquidity deficit was registered at Rs. 605.93 billion yesterday as an amount of Rs. 72.23 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 6.50%.  

Forex Market 

In Forex markets, overall activity continued to remain moderate yesterday.

The total USD/LKR traded volume for 08 March 2022 was $ 47.05 million.   

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