Weekly bill auction subscription remains steady

• Bond yields mostly unchanged

By Wealth Trust Securities

The total subscribed volume at yesterday’s weekly Treasury bill auction increased marginally to 61.91% of its total offered amount against its previous week of 60.24%, recording its 14th consecutive week of under subscription. The weighted average rate on the 91-day bill increased by one basis point to 5.16%, while the 182-day bill weighted average rate remained steady at 5.17%. The weighted average rate on the 364-day bill was registered at the stipulated cut-off rate of 5.21%. Bids-to-offer ratio increased to 1.42:1. 

Meanwhile, secondary bond market yields remained mostly unchanged yesterday on the back of limited trades. Trades were witnessed on the maturities of 15.12.22, 01.05.25 and 01.08.26 at levels of 5.72%, 7.00% and 7.39% to 7.40% respectively.

The total secondary market Treasury bond/bill transacted volume for 8 June was Rs. 2.4 billion.   

In money markets, the net liquidity surplus was recorded at Rs. 105.64 billion yesterday with an amount of Rs. 113.50 billion been deposited at Central Banks SDFR of 4.50% against an amount of Rs. 7.86 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on call money and repo was at 4.76% and 4.78% respectively.

USD/LKR   

The Forex market continued to remain inactive yesterday. The total USD/LKR traded volume for 8 June was $ 40.30 million.   

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