All-time high volume offered and accepted at weekly T-Bill auction

• 2023 yields dip marginally

By Wealth Trust Securities

An all-time high offered volume of Rs. 56 billion at a weekly Treasury bill auction was fully subscribed to yesterday, met with strong demand for the 91 day bill as the total offered amount at a weekly bill auction was fully taken up for the first time in 19 weeks.  

A volume of Rs. 47.76 billion or 85.28% was accepted on the 91 day bill alone, out of a total offered amount of Rs. 56 billion while the total bids received to total offered ratio increased to 1.98:1. 

The weighted average rates increased across the board by 02, 03 and 01 basis points respectively on the 91 day, 182 day and 364 day maturities. 

In the secondary bond market, activity centred on the 2023 maturities yesterday as the liquid maturity of 15.11.23 hit an intraday low of 6.25% against its previous day’s closing level of 6.30/32 while 15.03.23, 15.05.23 and 01.09.23 maturities changed hands at levels of 5.88% to 5.89%, 5.95% and 6.10% respectively as well.  In addition, 15.12.22 maturity traded at a level of 5.70%. 

The total secondary market Treasury bond/bill transacted volume for 13 July was Rs. 14.51 billion.   

In money markets, the overnight net liquidity surplus was seen increasing further yesterday to Rs. 89.78 billion as an amount of Rs. 143.55 billion was deposited at Central Banks SLDR of 4.50% against an amount of Rs. 53.77 billion withdrawn from Central Banks SLFR of 5.50%. The weighted average rates on overnight call money and repo was at 4.99% each. 

USD/LKR   

In Forex markets, the overall market continued to remain inactive yesterday. 

The total USD/LKR traded volume for 13 July was $ 68.00 million.   

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