Weekly weighted averages trickle down

• Accepted amount falls below total offered amount
• Rs. 145 billion on offer at bond auctions

By Wealth Trust Securities

The weekly Treasury bill weighted average yields were seen declining marginally at its auction held yesterday, registering its third consecutive week of declines. The 91-, 182- and 364-day maturities recorded dips of one, four and two basis points respectively to 31.94%, 30.59% and 29.85%.

However, the total accepted amount was seen falling short of the total offered amount for the first time in three weeks as only Rs. 81.68 billion was taken against an offered amount of Rs. 85 billion. The market favourite 91-day bill continued to dominate the auction as it represented 89.35% of the total accepted volume while the bid to offer ratio stood at 1.79:1.

The phase two of the auction will be opened on the 182-day and 364-day maturities at its weighted average rates until close of business on the day prior to settlement (i.e., 3.30 pm on 29.09.22).

Limited activity in the secondary bond market centred on the 01.07.32 maturity within the range of 29.48% to 29.74%.

Today’s bond auctions conducted in lieu of a Treasury bond maturity of Rs. 121.7 billion due on the 1 October, will see a total amount of Rs. 145 billion on offer consisting of Rs. 40 billion on a 01.07.2025 maturity, Rs. 35 billion on a 15.01.2028 maturity and a further Rs. 70 billion on a 01.07.2032 maturity.

The bond auctions conducted on 13 September saw the 01.07.2032 maturity record a weighted average rate of 29.96% while its total offered amount of Rs.45 billion was successfully accepted at its 1st phase. Furthermore, an additional amount of Rs. 9 billion was also taken up under its direct issuance window. However, the other maturity of 01.07.2025 saw only an amount of Rs. 3.7 billion being accepted in successful bids against its offered amount of Rs.30 billion at a weighted rate of 29.16%.

The total secondary market Treasury bond/bill transacted volume for 27 September was Rs.9.17 billion. 

In money markets, the weighted average rate on overnight REPO stood at 15.50% while an amount of Rs. 744.13 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 15.50%. The net liquidity deficit stood at Rs. 419.44 billion yesterday as an amount of Rs. 324.68 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50%.

Forex Market

In the Forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 362.90.

The total USD/LKR traded volume for 27 September was $ 93.92 million.

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