T. bond secondary market activity at standstill ahead of weekly T. bill auction

By Wealth Trust Securities

Activity in the secondary bond market came to virtually a standstill on Monday, with only limited quotations of the liquid maturities of 01.10.22, 01.01.24 and 01.06.26 witnessed at levels of 11.95/05, 12.05/15 and 12.18/28 respectively.

This week’s treasury bill primary auction, to be held today (20), will have on offer a total amount of Rs. 22.5 billion consisting of Rs. 5.0 billion on the 91 day, Rs.7.5 billion on the 182 day and Rs. 10 billion on the 364 day maturities. 

At last week’s auction, the Central Bank rejected all bids received for the 91 day and 182 day maturities while the weighted average of the 364 day maturity decreased by seven basis points.

Meanwhile in money markets, the net deficit stood at Rs. 48.23 billion as the Open Market Operations (OMO) Department of the Central Bank was seen injecting an amount of Rs. 36.88 billion on an overnight basis at a weighted average of 7.98%. 

Overnight call money and repo rates were in the average of 8.22% and 8.12% respectively. 

Rupee dips further

The USD/LKR rate on active one week forward contracts was seen dipping further to close the day at Rs.146.55/75 against its previous day’s closing level of Rs.146.25/35, on the back of continued importer demand, while spot next contracts closed at Rs.146.40/60. The total volume traded during the day of 18 July was $ 49.65 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 147.15/25; three months – 148.75/00; and six months – 150.85/95.

Given are the closing, secondary market yields of the most frequently traded maturities,