Money market liquidity turns positive

• Impressive outcomes at bond auctions 

By Wealth Trust Securities 

The overnight money market liquidity turned positive for the first time since 27 August 2021 to record a surplus of Rs. 57.43 billion yesterday. 

An amount of Rs. 335.53 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 14.50% against an amount of Rs. 278.09 billion withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 15.50%. The weighted average rates on overnight Call money and Repo stood at 15.50% each.

The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an 89-day reverse repo auction for a total volume of Rs. 60 billion at a weighted average rate of 27.00%.

Meanwhile, at the Treasury bond auctions conducted yesterday, the new maturity of 15.09.2027 recorded an impressive outcome, as its total offered amount of Rs. 110 billion was successfully accepted at its First phase of the auction. It recorded a weighted average rate of 29.79% while its direct issuance window of 20% will be on offer until close of business of the day prior to settlement (i.e., 4.00 p.m. on 13.01.2023). 

Furthermore, an amount of Rs. 39.5 billion was successfully taken up on the 15.05.2026 maturity as well against its offered amount of Rs. 50 billion at a weighted average rate of 30.85%.

The secondary bond market continued to be active yesterday as the maturities of 01.05.24, 15.01.25 and 15.09.27 traded at levels of 31.75% to 32.00%, 30.75% and 29.70% to 29.85% respectively.

The total secondary market Treasury bond/bill transacted volume for 11 January was Rs. 23.63 billion.   

Forex Market 

In the Forex market, the middle rate for USD/LKR spot contracts remained steady at Rs. 362.24 yesterday.

The total USD/LKR traded volume for 11 January was $ 45.75 million.  

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