Downward momentum at weekly T-Bill auction continues
The weekly weighted average rates were seen continuing its positive drive, recording drops across all three maturities for a second consecutive week at its auctions held yesterday. The market favorite 91 day bill maturity recorded a dip of 21 basis points to 7.77% while the 182 day and 364 day bills registered drops of 09 and 02 basis points respectively to 8.03% and 8.17%. The total offered amount of Rs.53 billion was successfully accepted at the auction for a fifth consecutive week as its bids to offer ratio stood at 3.39:1. Given below are the details of the auction,
In the secondary bond market, yields declined marginally yesterday as the liquid maturities of 01.09.28 and 15.03.31 hit intraday lows of 11.40% and 11.83% respectively against its previous day’s closing levels of 11.50/60 and 11.87/95. In addition, 15.01.27 maturity changed hands at levels of 10.87% to 10.88%. In secondary bills, the latest 91 day bill maturity traded at low of 7.50%, post-auction.
The total secondary market Treasury bond/bill transacted volume for 15th November 2021 was Rs.0.15 billion.
In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs.10.10 billion and Rs.6.29 billion by way of overnight and 7 day repo auctions at weighted average rates of 5.97% each while an amount of Rs.315.59 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6.00%. The net liquidity deficit was registered at Rs.226.22 billion yesterday as an amount of Rs.72.98 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5.00%. The weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.92% and 5.97% respectively.
USD/LKR
In the Forex market, the USD/LKR rate on spot and cash contracts traded at level of Rs.203.00 while the overall market remained inactive yesterday.
The total USD/LKR traded volume for 15th November 2021 was US $ 52.00 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)