Weekly averages decrease across the board

• Secondary bonds market remains broadly steady

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday saw its weighted average rates decreasing from its previously recorded weighted averages for the first time in five weeks. This was following the policy easing of 50 basis points. The 91-day bill recorded the sharpest dip of 16 basis points to 10.07% closely followed by the 182-day bill by 12 basis points to 10.23% and the 364-day bill by 10 basis points to 10.28%. The total offered amount of Rs.80 billion was successfully met at the auction as the total bids received to total offer ratio was seen increasing to a five-week high of 2.31:1.

The 2nd phase of the auction will be opened only on the 364-day maturity at its weighted average rate until close of business of the day prior to settlement (i.e., 4.00 pm on 28.03.24).

In the secondary bond market, activity continued at a moderate pace yesterday with yields continuing to remain mostly unchanged. The most sorted maturities of 15.12.26 and 15.12.28 were seen trading at levels of 11.33% to 11.35% and 12.08% to 12.10% respectively. In addition, maturities of 01.02.26, 15.01.27, 15.06.27, 01.07.28 and 15.05.30 maturities changed hands at levels of 10.88% to 10.90, 11.40%, 11.85%, 12.10% and 12.36% to 12.38% respectively as well.

The total secondary market Treasury bond/bill transacted volume for 26 March was Rs.15.04 billion.

In money markets, the weighted average rates on overnight call money and repo were registered at 8.72% and 9.10% respectively as the DOD (Domestic Operations Department) of the Central Bank injected liquidity by way of overnight reverse repo auction for an amount of Rs.38.81 billion at weighted average rate of 8.57%. Further an amount of Rs.16.98 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50% against an amount of Rs. 86.38 billion deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.50%. 

 Forex Market 

In the Forex market, the USD/LKR spot contracts appreciated further yesterday to Rs.300.85/301.00 against its previous day’s closing level of Rs.301.90/302.00.

The total USD/LKR traded volume for 26 March was US $ 210.90 million. 

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