Phase 1 undersubscribed for 5th straight week; rates record mixed results

Thursday, 24 April 2025 00:06 - - {{hitsCtrl.values.hits}}

Secondary bond market yields ease marginally
Rupee steady

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday went undersubscribed at its 1st phase for a fifth consecutive week, raising 83.15% or Rs. 95.62 billion of the total Rs. 115 billion on offer accepted. This was despite total bids received exceeding the offered amount by 2.01 times.

The auction saw weighted average yield rates exhibit mixed results. Accordingly, the weighted average rates on the 91-day tenor increased by 03 basis points to 7.62% and the 182-day tenor rose by 02 basis points to 7.98%. However, the weighted average rate on the 364-day tenor declined by 02 basis points to 8.29%

The 2nd phase of subscription for the auction will be opened across all three ISINs at the weighted average rates until close of business of the day prior to settlement (i.e., 3.00 p.m. on 24.04.2025). Given below are the details of the auction;

Meanwhile, the secondary bond market saw yields ease marginally yesterday on the back of renewed buying interest. Market activity and transaction volumes were seen at healthy levels.

The 01.06.26 and 01.08.26 maturities were seen trading at the rates of 8.60% and 8.75% respectively. The 01.05.27 and 15.09.27 maturities were seen trading at the rates of 9.50% and 9.70%-9.65% respectively. The 15.02.28 and 15.03.28 maturities traded at the rates of 9.98% and 10.00% respectively. The 01.05.28 maturity was seen trading at the rate of 10.07% and 10.11%-10.12% respectively. The 01.09.28 and 15.10.28 maturities were seen trading at the rates of 10.20% and 10.23% respectively. The 15.09.29 and 15.12.29 maturities were seen trading at the rates of 10.55% and 10.65%-10.60%. The 15.03.31 maturity was seen trading within the range 11.01%-11.00%.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.99% and 8.00% respectively.

The net liquidity surplus increased to Rs. 94.66 billion yesterday. Rs. 0.15 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 94.81 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex market

In the Forex market, the USD/LKR rate on spot contracts closed the day broadly steady at Rs. 299.85/299.95 as against its previous day’s closing level of Rs. 299.85/299.90.

The total USD/LKR traded volume for 22 April 2025 was $ 86.10 million.

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

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