Steady progress at weekly auction continues

Thursday, 27 August 2020 02:19 - - {{hitsCtrl.values.hits}}

Bond yields broadly unchanged

By Wealth Trust Securities

The steady progress at the weekly Treasury bill auction continued at its auctions held yesterday as well, as the total offered amount of Rs. 40 billion was successfully subscribed. The weighted average rates on the 91 day and 182 day maturities decreased by 03 basis points each to 4.56% and 4.68% respectively while the 364 day bill deceased by 01 basis points to 4.89%. The bids to offer ratio stood at 1.92:1.

In the secondary bond market yesterday, yields were seen closing the day mostly unchanged as activity remained moderate. Limited trades were seen on the maturities of 15.12.23, 01.05.25, 01.02.26, 15.08.27 and 15.05.30 at levels of 5.94%, 6.39% to 6.40%, 6.52% to 6.54%, 6.97% to 6.98% and 7.28% to 7.30% respectively. The total secondary market Treasury bond/bill transacted volumes for 25 August was Rs. 6.15 billion.

In the money market, the weighted average rates on overnight call money and Repo’s stood at 4.53% and 4.54% respectively as the overnight surplus liquidity was recorded at a high of Rs. 197.51 billion yesterday.

LKR trades steadily

In the Forex market, USD/LKR rate on spot contracts was seen trading within the range of Rs. 186.20 to Rs. 186.50 yesterday before closing the day at Rs. 186.30/50 against its previous day’s closing level of Rs. 186.30/70. The total USD/LKR traded volume for 25 August was $ 45.42 million.

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