Weekly Treasury bill averages steady for first time in five weeks

• Bond yields decrease

By Wealth Trust Securities

The weekly weighted average rates remained steady at yesterday’s Treasury bill auction, reversing a downward trend witnessed over the previous four weeks. 

The total accepted amount too decreased to a five-week low of 24% of its total offered amount as only Rs. 30.78 billion was successfully taken up against a total offered amount of Rs. 93 billion. The weighted average rates remained unchanged across the board at 20.73%, 21.90% and 22.04% on the 91 day, 182 day and 364 day maturities respectively. 

In the secondary bond market, renewed buying interest subsequent to the bill auction outcome resulted in the yield of the liquid maturity of 01.06.25 decreasing to hit an intraday low of 21.25% against its previous day’s high of 21.60%. In addition, the 15.01.28 maturity traded at 21.25% as well.

The total secondary market Treasury bond/bill transacted volume for 21 June was Rs. 4.61 billion.   

In money markets, the weighted average rates on overnight Call money and REPO stood at 14.50% each while the net liquidity deficit stood at Rs. 508.15 billion yesterday. An amount of Rs. 204.07 billion was deposited at Central Bank’s Standard Deposit Facility Rate (SDFR) of 13.50% while an amount of Rs. 712.21 billion was withdrawn from Central Bank’s Standard Lending Facility Rate (SLFR) of 14.50%.

Forex market 

In the forex market, the middle rate for USD/LKR spot contracts appreciated to Rs. 360.90 yesterday against its previous day’s Rs. 361.75.

The total USD/LKR traded volume for 21 June was $ 14.15 million.  

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