Weekly weighted averages increase further; bond yields edge up

By Wealth Trust Securities

The weighted average yields at the weekly T-bill auction conducted yesterday were seen increasing, with the market favourite 91-day bill rising by 47 basis points to 7.71%. The 182-day bill weighted average rate increased by seven basis points as well to 8.10%. Nevertheless, the weighted average rate on the 364-day continued to decrease, reflecting a drop of four basis points to 8.02%. Once again, the total accepted volume fell short of the total offered volume, as Rs. 40.12 billion was accepted against an offered volume of Rs. 47.5 billion.

The bids to offer ratio was registered at 1.76:1.

Activity in the secondary bond market mainly continued on the 15.10.27 and 15.03.31 maturities as its yields increased to trade at levels of 11.52% to 11.56% and 11.77% to 12% respectively. In addition, 15.01.27 maturity changed hands at 11.45% as well. In secondary bills, January and February 2022 maturities traded at levels of 7.50% to 7.70%, pre-auction.

The total secondary market Treasury bond/bill transacted volumes for 21 December was Rs. 5.56 billion. 

In money markets, the weighted average rates on call money and repo remained steady at 5.92% and 5.99% respectively as an amount of Rs. 438.14 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 6%. The net liquidity deficit increased marginally to Rs. 340.41 billion yesterday with an amount of Rs. 97.73 billion being deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 5%.

USD/LKR 

In the Forex market, the USD/LKR rate on spot contracts traded at Rs. 203 while the overall market remained inactive yesterday.

The total USD/LKR traded volume for 21 December 2021 was $ 47.80 million. 

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