- Positive momentum at T-Bill auctions continue ahead of T-Bond auctions
- Bond yields dip marginally
The market favorite 91 day bill weighted average yield decreased for a second consecutive week at its auction held yesterday, recording another steep dip of 20 basis points to 7.98% and falling below the 8.00% psychological levels for the first time over the past five weeks. The 182 day and 364 day bill weighted average yields dipped as well, by 09 and 07 basis points respectively to 8.12% and 8.19%.
The total offered amount of Rs.52 billion was successfully accepted at the auction, predominantly by way of the 91 day bill while the bids to offer ratio increased to a 69 week high of 3.85:1. Given below are the details of the auction. Given below are the details of the said auction,
Meanwhile, the outcome of the weekly Treasury bill auction saw yields in the secondary bond market decrease yesterday. The liquid maturities of 15.12.23 and 15.01.27 hit intraday lows of 9.00% and 11.00% respectively against its previous day’s closing levels of 9.10/30 and 11.00/05. In addition, 15.11.23, 15.01.26, 01.09.28 and 15.05.30 maturities traded at a level of 9.00%, 10.50%, 11.53% and 11.68% to 11.71% as well. In the secondary bill market, 04th February 2021 maturity was seen changing hands at a level of 8.00%, prior to the auction.
Today’s Treasury Bond auctions will have on offer an amount of Rs.40 billion in total, consisting of Rs.15 billion of a 15.03.2024 maturity and Rs.25 billion of a 15.03.2031 maturity. The weighted average yields at the bond auctions conducted on 28th October 2021 were 9.94%, and 11.61% for the maturities of 15.03.25 and 01.09.28 respectively. The 2nd phase of the auction was opened for the undersubscribed 15.03.25 maturity while a direct issuance window was opened for the fully subscribed 01.09.28 maturity.
The total secondary market Treasury bond/bill transacted volume for 09th November 2021 was Rs.0.65 billion.
In money markets, the net liquidity deficit decreased to Rs.193.34 billion yesterday as an amount of Rs.85.24 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5.00% against an amount of Rs.308.58 billion withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6.00%. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs.30.00 billion by way of an overnight repo auction at a weighted average rate of 5.98%. The 07 day Repo auction for Rs.10 billion drew no bids. However it further drained out an amount of Rs.10.00 billion by way of a 14 day repo auction at a weighted average rate of 6.05%, valued today. The weighted average rates on overnight Call money and REPO registered at 5.93% and 5.94% respectively.
USD/LKR
In the Forex market, the USD/LKR rate on spot contracts traded at level of Rs.202.97 to Rs.202.99 while the overall market remained inactive yesterday.
The total USD/LKR traded volume for 09th November 2021 was US $ 38.50 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)