Weekly Treasury Bill averages decline across the board

• Rupee depreciates further

By Wealth Trust Securities

This week’s Treasury bill auction conducted yesterday, saw the weighted average rates on all three maturities reduce. The decline was led by the 91-day bill by 30 basis points followed by the 364-day bill by 23 basis points and the 182-day bill by 17 basis points. As such the tenures recorded weighted averages of 18.16%, 15.19% and 13.35% respectively.

The total offered amount of Rs. 160 billion was accepted at the 1st phase of the auction. The 2nd phase of subscription, for all three maturities will be opened until 4:00 p.m. on the day before the settlement date (i.e., 13.09.2023) at the weighted averages determined at the 1st phase of the auction.

The secondary bond market trades were seen on the liquid maturities of the 01.07.25, two 26’s (i.e.,01.06.26 & 01.08.26), 15.09.27 and two 28’s (i.e., 01.05.28 & 01.07.28) at levels of 15.30%, 15.00% to 15.15%, 14.39% to 14.54% and 14.05% to 14.20% respectively.

In secondary market bills prior to the auction outcome, December 2023 bills traded at 17.90%. Additionally, October/November bills traded within the range of 17.20% to 18.00% as well.

The total secondary market Treasury bond/bill transacted volume for 12 September 2023 was Rs. 36.23 billion.

In money markets, the DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for a volume of Rs. 21.40 billion at a weighted average rate of 11.36% while an amount of Rs. 40.72 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. The net liquidity deficit stood at Rs. 44.62 billion yesterday.

The weighted average rates on overnight call money and repo were registered at 11.51% and 11.64% respectively.

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts closed the day at Rs. 323.50/324.50 as against its previous day’s close of Rs. 322.45/322.75. 

The total USD/LKR traded volume for 12 September was $ 22.50 million.

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