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By Wealth Trust Securities
The weekly Treasury bill weighted average rates were seen spiking at its auctions conducted yesterday as all three maturities exceeded the 9.00% psychological level for the first time since April-May 2019 with the 182 day and 364 day maturities closing in on 10.00%.
The 364 day maturity recorded the sharpest increase of 142 basis points (1.42%) to 9.95%, its highest week on week increase since April 2007 closely followed by the 182 day maturity by 135 basis points (1.35%) to 9.88%.
The market favourite 91 day bill increased by 72 basis points (0.72%) to 9.33%, its highest level since April 2019.
The total accepted amount decreased to a low of 65.37% of its total offered amount as only an amount of Rs. 35.95 billion was successfully taken up against an offered amount of Rs. 55 billion. The bid to offer ratio decreased to a 26 week low of 1.32:1.
In the secondary bond market, limited trades were witnessed only on the 01.08.25 maturity at 13.00% while on bills, 3 June 2022 maturity traded at a level of 8.85%, pre-auction.
The total secondary market Treasury bond/bill transacted volume for 28 February was Rs. 2.30 billion.
In money markets, the weighted average rates on overnight Call money and REPO remained steady at 6.48% and 6.50% respectively as an amount of Rs. 655.47 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6.50%.
The net liquidity deficit was registered at Rs. 578.93 billion yesterday as an amount of Rs. 76.53 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5.50%.
Forex Market
In the Forex market, the overall market remained inactive.
The total USD/LKR traded volume for 28 February 2022 was $ 82.70 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
