Downward trend in primary T-bill rates continue

By Wealth Trust Securities

The downward trend in yields at the weekly T-bill auction continued yesterday as well, with the 364 day bill decreasing by 03 basis points to 10.47% and the 182 bill by 01 basis point to 10.29%. 

The weighted average yield of the 91 day bill remained steady at 9.60%. The total amount accepted at the auction was Rs. 30.2 billion as against an offered amount of Rs. 30.5 billion, with the 182 day and 364 day maturities representing 51% and 45% respectively of the accepted amount. 

In the secondary bond market, yields of the two 2021 maturities (i.e. 01.08.21 and 15.12.21) were seen decreasing further to intraday lows of 11.28% and 11.30% respectively, as against the  previous day’s closing levels of 11.30/33 and 11.32/35 respectively. 

Furthermore, the two 2023 maturities (i.e. 15.05.23 and 01.09.23) and the two 2024 maturities (i.e. 01.01.24 and 01.08.24) were seen changing hands within the range of 11.40% to 11.43% and 11.40% to 11.45%. 

Maturities on the shorter end of the yield curve such as the 15.11.18 and 15.10.19 were trading within the range of 10.60% to 10.65%. In the secondary bill market, the 182 day bill was quoted at 10.15/25, post auction.

Meanwhile in money markets, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka injected an amount of Rs. 19.63 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 8.75% as the net liquidity shortage increased once again to Rs. 28.81 billion. The overnight call money and repo rates remained steady to average at 8.75% and 8.83% respectively.

Rupee trades within 

a narrow range  

The USD/LKR rate on spot contracts was seen trading within the range of Rs. 153.28 to Rs. 153.40 in comparison to the previous day’s closing levels of Rs. 153.25/40 on the back of importer demand.

The total USD/LKR traded volume for 20 June was $ 76.76 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month – 154.35/45; three months – 156.35/45; six months – 159.20/30.