Rs. 173 b T-Bill auction fully subscribed; rates unchanged

Thursday, 15 May 2025 00:30 - - {{hitsCtrl.values.hits}}

Secondary Bond market starts off positive

By Wealth Trust Securities

The weekly Treasury Bill auction conducted yesterday was fully subscribed. The entire Rs. 173 billion on offer successfully raised in the 1st phase in competitive bidding. The total bids received exceeded the offered amount by 2.06 times.

The auction saw weighted average yield rates remain unchanged from the previous week. Accordingly, the weighted average rates on the 91-day, 182-day and 364-day tenors were recorded at 7.65%, 7.98% and 8.30% respectively.

The phase 2 of the auction will be opened only on the 91-day and 182-day maturities at the respective weighted average rates until close of business on the day prior to settlement (i.e., 3 p.m. on 15.05.25).

Meanwhile, the Secondary Bond market yesterday carried over the positive momentum from the tail-end of the previous week. Market activity and transaction volumes were seen at healthy levels as buying interest was observed on 2028-2031 tenors which saw yields edge down further.

The 15.09.27 maturity was seen trading within the range of 9.27%-9.26%. The 15.02.28 and 15.03.28 maturities traded down the range of 9.80%-9.70% collectively. The yield on the 15.10.28 maturity traded down the range of 9.90%-9.85%. Similarly, the yield on the 15.12.29 maturity declined down the range of 10.24%-10.19%. The 15.03.31 maturity was seen trading lower at the rate of 10.65%.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.97% and 7.98% respectively.

The net liquidity surplus stood at

Rs. 183.15 billion yesterday. Rs. 0.24 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 183.39 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.50%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 298.60/298.70 as against its previous day’s closing level of Rs. 298.85/298.95.

The total USD/LKR traded volume for 9 May was $ 76.70 million.

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

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