Weekly averages increase across the board

• Accepted amount falls below the offered amount

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday saw all three weighted averages increase, with the 91 day bill increasing for a third consecutive week while the 182 day and 364 day bills increased for the first time in six weeks. 

The increase was led by the 91 day bill as it recorded a jump of 107 basis points (1.07%) to 30.51% followed by the 182 day and 364 day bills by 55 and 69 basis points respectively to 29.51% and 29.83%. However, only an amount of Rs. 56.71 billion was accepted in total as successful bids against a total offered amount of Rs. 90 billion.

The bids to offer ratio dipped to a low of 1.21:1 while phase 2 of the auction will be opened on all three maturities at its weighted average rates until close of the business of the day prior to settlement (i.e. 3.30 pm on 25.08.22). 

The secondary bond market continued to be inactive with limited trades seen only on the 01.06.25 maturity at 28.00% to 28.05%. In secondary bills, August and October 2022 bill maturities changed hands at levels of 20.50% to 23.25%.

The total secondary market Treasury bond/bill transacted volume for 23 August was Rs. 1.70 billion.   

In money markets, the weighted average rate on overnight REPO stood at 15.50% while the net liquidity deficit stood at Rs. 490.58 billion yesterday. An amount of Rs. 298.00 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 14.50% while an amount of Rs. 788.58 billion was withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 15.50%. No Call money transactions were recorded.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts remained stable at Rs. 361.00 yesterday.

The total USD/LKR traded volume for 23 August was $ 12.43 million.  

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