Click here to view the article
Daily report for the 03rd of July 2024 – Courtesy Wealth Trust Securities Ltd
- T-Bill Averages Remain Static For The First Time In Five Weeks
- Auction Undersubscribed
- Secondary Bond Market Yields Edge Down
- Rupee dips marginally
At the weekly Treasury bill auction held yesterday, the weighted average rates remained unchanged, after four consecutive weeks of increases. The yield on the 91-day maturity was recorded at 10.07%, the 182-day maturity at 10.19%, and the 364-day maturity at 10.31%.
The auction went partially undersubscribed at its 1st phase, as only 92.46% or Rs. 175.671 billion was raised out of the total offered amount of Rs. 190.00 billion.
The 2nd phase of subscription, for the 182- and 364-day maturities will be opened until 4:00 pm on the day before the settlement date (i.e., 04.07.2024) at the respective weighted averages determined at the 1st phase of the auction. Given below are the details of the auction;
Meanwhile, the secondary bond market rallied yesterday, following the announcement of the T-Bill auction results, on the back of increased activity and transaction volumes. Accordingly, the 2026 tenors of 01.06.26 and 01.08.26 were seen dropping to intraday lows of 10.70% from intraday highs of 10.80%. Similarly, the 01.05.28 maturity witnessed strong demand that resulted in its yield dropping from 12.00% to 11.90%, on the back of robust volumes. This trend was mirrored on the other 2028 tenor of 15.02.28 and 15.03.28 which hit intraday lows of 11.85% each as against highs of 11.90%. The 15.09.29 maturity also experienced some bullish momentum which drove its yield down from 12.11% to 12.05%, while the 01.12.31 maturity was observed trading at 12.15% on large volumes.
The total secondary market Treasury bond/bill transacted volume for 02nd July was Rs. 17.01 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.76% and 9.14% respectively while the net liquidity was a surplus Rs 95.41 billion yesterday. An amount of Rs. 115.09 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 8.50%, while an amount of Rs. 4.20 billion was withdrawn from Central Banks SLFR (Standard Lending Facility Rate) of 9.50%
Further, the DOD (Domestic Operations Department) of Central Bank conducted an overnight reverse repo auction amounting to Rs. 15.48 billion at the weighted average rate of 8.68%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day down at Rs. 304.20/304.50, against its previous day’s closing level of Rs. 303.10/303.30.
The total USD/LKR traded volume for 02nd July was US $ 146.58 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)