Weekly bill auction undersubscribed once again

• Bond market activity dries up  

By Wealth Trust Securities

The weekly Treasury bill auction was undersubscribed once again after a lapse of two weeks with only an amount of Rs.32.49 billion been accepted against its total offered amount of Rs.40 billion. However, weighted averages on the 91 day, 182 day and 364 day maturities were recorded marginally lower by 02 basis points each and 01 basis point respectively than its stipulated cut off rates to register 4.57%, 4.69% and 4.96%. The bids to offer ratio was recorded at 1.53:1. 

The secondary bond market activity dried up considerably yesterday with trades witnessed only on the 01.02.26 and 15.08.27 maturities at levels of 6.60% and 6.89% to 6.90% respectively. In secondary bills, September and October 2021 maturities changed hands at 4.79% and 4.92% respectively.

The total secondary market Treasury bond/bill transacted volumes for 26th October 2020 was Rs.2.23 billion.   

The overnight surplus liquidity was recorded at Rs.191.21 billion yesterday while call money and repo averaged 4.52% and 4.60% respectively.

Rupee steady

A continued equilibrium market saw the USD/LKR rate on spot contracts close the day steady at Rs.184.30/40 yesterday.  The total USD/LKR traded volume for 26th October was US $ 70.47 million. 

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