Weekly weighted averages continue to skyrocket

• 91 day bill average exceeds 11% for the first time since October 2012
• Rupee dips

By Wealth Trust Securities

The weekly weighted average rates continued to rise sharply at its Treasury bill auction conducted yesterday, repeating its trend from the previous two weeks. It was the 91 day bill which reflected the sharpest increase of 106 basis points to 11.35% followed by 182 day bill by 57 basis points to 11.05% and the 364 day bill by 49 basis points to 11.15%. The total accepted amount was seen dipping below the total offered amount once again with only Rs.54.84 billion been accepted against a total offered amount of Rs.60 billion. 

Activity in the secondary bond market moderated once again yesterday. 

The total secondary market Treasury bond/bill transacted volume for 14th March 2022 was Rs.1.54 billion.   

In money markets, the overnight net liquidity deficit was registered at Rs.534.74 billion yesterday as an amount of Rs.100.80 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 6.50% against an amount of Rs.635.53 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 7.50%. The weighted average rates on overnight Call money and REPO stood at 7.50% each.

Rupee dips

The USD/LKR rate on spot contracts was seen trading within a range of Rs.273.97 to Rs.280.00 yesterday before closing the day at levels of Rs.265/90 against its previous day’s closing levels of 265/85.

The total USD/LKR traded volume for 14th March 2022 was US $ 49.00 million.  

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