CBSL Treasury bill holding skyrockets to over two-month high

• nSecondary market bond yields continue to dip

By Wealth Trust Securities

The Central Bank of Sri Lanka’s (CBSL) Treasury bill holding was seen increasing steeply to over a two-month high of Rs. 290.14 billion in book value terms on Monday, 3 July against an eighth-month low of Rs. 143.39 recorded on 23 June. 

Furthermore, the net shortfall in money markets was seen decreasing to over a three-week high of Rs. 1.58 billion yesterday as well. The overnight call money and repo rates remained mostly unchanged to average 8.75% and 8.79% respectively as no Open Market Operations (OMO) were conducted yesterday.

In the secondary bond market, selling interest during morning hours of trading saw yields increase on the liquid maturities of the two 2021’s (i.e. 01.08.21 and 15.12.21), 01.08.24 and 01.08.26 to intraday highs of 11.20%, 11.22%, 11.33% and 11.34% respectively. However, buying interest at these levels saw yields dip once again to intraday lows of 11.15%, 11.17%, 11.27% and 11.33%. In addition, on the short end of the curve, 2019 maturities were seen changing hands within the range of 10.52% to 10.70% as well.

Today’s weekly Treasury bill auction will see a total amount of Rs. 31 billion on offer consisting of Rs. 7 billion on the 91 day, Rs. 14 billion on the 182 day and Rs. 10 billion on the 364 day bills. At last week’s auction, the weighted averages remained steady for the first time in 10 weeks at 9.60%, 10.29% and 10.47% respectively.

The total secondary market Treasury bond transacted volume for 3 July 2017 was Rs. 10.64 billion.

Rupee depreciates marginally  

The rupee on spot contracts in the Forex market was seen depreciating marginally yesterday to close the day at Rs. 153.65/70 against its previous day’s closing of Rs. 153.55/65 on the back of renewed importer demand.

The total USD/LKR traded volume for 3 July was $ 62.80 million.