Dull sentiment continues ahead of weekly bills auction

By Wealth Trust Securities

The secondary bond market remained rather dull yesterday with limited trades seen on the 2021s (i.e. 01.08.21, 15.10.21 and 15.12.21), 2022s (i.e. 15.03.22 and 01.07.22), 2023s (i.e. 15.05.23 and 15.07.23), 15.03.24, 15.01.27 and 01.05.29 maturities within at levels of 9.40% to 9.45%, 9.65% to 9.78%, 9.88% to 9.90%, 9.97% to 10.00%, 10.37% to 10.40% and 10.55% to 10.56% respectively. In addition, a short dated maturity close to 91 days of 15.09.19 was seen changing hands at 8.60%.   

Meanwhile, today’s weekly bill auction, will have on offer a total amount of Rs. 20 billion, consisting of Rs. 2 billion of the 91-day maturity, Rs. 4 billion of the 182-day maturity and a further Rs. 14 billion on the 364-day maturity. At last week’s auction, the weighted average on the 364-day bill continued its decreasing for a fourth consecutive week, recording a drop of 28 basis points to 8.90%. The weighted averages on the 182-day bill decreased to 8.71% while all bids received on the 91-day bill were rejected.

The total secondary market Treasury bond/bill transacted volumes for 27 May was Rs. 3.17 billion. 

In money markets, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 12.1 billion on an overnight basis by way of a seven-day Repo auction at a weighted average of 8.61% as the net liquidity surplus in the system stood at Rs. 31.98 billion yesterday. The overnight call money and repo rates averaged at 8.46% and 8.59% respectively.

Rupee loses marginally 

In Forex markets, the spot rate was seen losing marginally yesterday to close the day at Rs. 176.25/35 when compared against the previous day’s closing levels of Rs. 176.20/30 on the back of buying interest by banks.

The total USD/LKR traded volume for 27 May was $ 81.35 million

Some of the forward USD/LKR rates that prevailed in the market were one month – 176.95/05; three months – 178.55/65; and six months – 181.05/20.