Weekly averages dip for second consecutive week

• Inflation crosses 70% psychological level
• Rupee steady

By Wealth Trust Securities

 The weekly Treasury bill weighted average rates decreased across the board for a second consecutive week at its auctions held yesterday. The market favourite 91 day or 3 month bill led the way with a drop of 76 basis points (B.P) to 31.95% followed by the 182 day and 364 day bills by 19 and 39 B.P respectively to 30.63% and 29.87%. 

The 91 day maturity dominated the auction once again as it represented 85.25% of the total offered and accepted volume of Rs. 65 billion. Phase 2 of the auction will be opened on the 182 day and 364 day maturities at its weighted average rates until close of the business of the day prior to settlement (i.e. 3.30 pm on 22.09.22). 

Meanwhile, limited activity in the secondary bond market yesterday was solely on the 01.07.32 maturity within the range of 29.30% to 29.40%. 

The National Consumer Price Index (NCPI; Base 2013=100) for the month of August increased to a high of 70.2% on its point to point against its previous month’s figure of 66.7%. The annual average also increased to 31.3% against 25.9%.

The total secondary market Treasury bond/bill transacted volume for 20 September was Rs. 7.12 billion.   

In money markets, the weighted average rate on overnight REPO stood at 15.50% while  an amount of Rs. 747.22 billion was withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 15.50%. The net liquidity deficit stood at Rs. 394.04 billion yesterday as an amount of Rs. 353.19 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 14.50%.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 362.90 yesterday.

The total USD/LKR traded volume for 20 September was $ 103.31 million.  

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