Weekly averages increase; auction undersubscribed

Thursday, 25 May 2023 02:52 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weekly Treasury bill weighted average rates increased once again at its auctions held yesterday. The 91-day maturity increased the most by 19 basis points to 25.66% followed by the 182-day and 364-day maturities by 08 and 18 basis points respectively to 25.30% and 22.97%. In total an amount of Rs. 124.87 billion was successfully accepted at the 1st phase of the auction against its total offered amount of Rs. 160 billion while the 2nd phase of the auction will be opened on all three maturities at its weighted average rates until close of business of the day prior to settlement (i.e., 3.30 p.m. on 25.05.23).

Activity in the secondary bond market remained moderate yesterday as most market participants continued to be on the sidelines. Limited trades were seen on the 15.09.27 maturity at levels of 26.80% to 26.95%.

The total secondary market Treasury bond/bill transacted volume for 23 May was Rs. 2.48 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of a 7-day reverse repo auction for a volume of Rs.25.00 billion at weighted average rate of 16.50%.

The net liquidity deficit stood at Rs. 116.88 billion with as an amount of Rs. 91.88 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 16.50%. The weighted average rates on overnight call money and REPO stood at 16.50% each.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts appreciated for a third consecutive day to hit intraday high Rs. 302.50 yesterday before closing the day at Rs. 303.50/304.20 against its previous day’s closing level of Rs. 304.40/304.60.

The total USD/LKR traded volume for 23 May was $ 54.40 million.

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