Weekly averages recorded at cut-off rates

• Auction undersubscribed for a second consecutive week
• Bond yields increase further on moderate trading

By Wealth Trust Securities

The weighted average rates at the weekly Treasury bill auctions conducted yesterday were recorded at its stipulated cut off rates while the auction was undersubscribed for a second consecutive week. 

The auction registered a shortfall of Rs. 20.99 billion against its total offered amount of Rs. 40 billion while its bids to offer ratio decreased to a four weeks low of 1.31:1. The weighted average rates of the 91 day, 182 day and 364 maturities were registered at 4.57%, 4.69% and 4.96% respectively. 

In the secondary bond market, yields increased further on the back of moderate activity. Limited trades of the 15.07.23, 01.08.24, 15.09.24 and 01.07.28 were witnessed at levels of 5.87% to 5.90%, 6.30% to 6.35%, 6.20% and 7.15% respectively against its previous day’s closing levels of 5.75/90, 6.22/25, 6.16/20 and 7.10/15. 

In addition, the 01.05.28 maturity traded at levels of 7.16% to 7.18% while in the secondary bill market, April 2021 maturities continued to changed hands at levels of 4.65% to 4.70%.

In the money market, the weighted average rates on overnight call money and repo remained mostly unchanged at 4.53% and 4.59% respectively as the overnight net surplus liquidity increased marginally to Rs.141.32 billion yesterday.

Rupee steady

The USD/LKR rate on spot contracts was seen closing the day steady at Rs. 184.35/45 yesterday on the back of an equilibrium market.

The total USD/LKR traded volume for 3 November was $ 95.75 million.    (References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, money broking companies)