First Treasury bond auction in four months receives full subscription

By Courtesy Wealth Trust Securities Ltd 

The Treasury bond auctions conducted yesterday after a lapse of four months saw its total offered amount of Rs. 100 billion being successfully taken up at its 1st phase of the auction, despite Wednesdays Treasury bill auction going undersubscribed. The bond auction will see a further a further amount of 20% been offered on both maturities, through a direct issuance window, until close of business today. (I.e., 4:00 p.m. on 14.07.23).

The 01.05.28 maturity recorded a weighted average rate of 15.74% while the 15.05.30 maturity recorded a weighted average of 15.67%. Given below are the details of the auction, 

The secondary bond market became active following the auction outcome as the auctioned maturities (i.e., 01.05.28 & 15.05.30) were seen changing hands at levels of 15.60% to 15.30%.

In secondary bills, August, October and November 2023 and May 2024 maturities changed hands at levels of 19.08% to 21.00% and 16.00% respectively. 

The total secondary market Treasury bond/bill transacted volume for 12 July 2023 was Rs. 73.14 billion.

In money markets, the weighted average rates on overnight call money and REPO stood at 12.00% and 11.94% respectively while the net liquidity deficit stood at Rs. 166.71 billion yesterday.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of overnight and 7-day reverse repo auctions for a total volume of Rs. 96.33 billion at weighted average rates of 11.64% and 12.00% respectively while an amount of Rs. 79.61 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 12.00%. An amount of Rs. 9.22 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 11.00%. 

Forex Market 

In the Forex market, the USD/LKR rate on spot contracts were traded within the range of Rs. 316.00 to Rs. 316.75 yesterday before closing the day at Rs. 316.50/318.50 against its previous days closing level of Rs. 315.50/316.50.

The total USD/LKR traded volume for 12 July was $ 115.80 million. 

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