Daily Bond Buzz

Weekly bill auction sees Rs.61 billion on offer ; Bond market sentiment dull

The weekly bill auction due today will see a total volume of Rs.61 billion on offer, an increase by Rs.8 billion in comparison to its previous week’s total offered volume. This will consist of Rs.18 billion each on the 91 day maturity and the 182 day maturity and further Rs.25 billion on the 364 day maturity. At last week’s auction, the 91 day bill weighted average rate declined for a third consecutive week, recording another considerable dip of 21 basis points to 7.77%. The weighted average rates on the 182 day and 364 day bills too recorded decreases of 09 and 02 basis points respectively to 8.03% and 8.17%.

Meanwhile, the dull sentiment in the secondary bond market continued yesterday with the maturities of 15.12.23, 15.03.24, 15.05.30 and 15.03.31 changing hands at levels of 8.80%, 9.20%, 11.55% to 11.73% and 11.845% to 11.86% respectively. In secondary bills, January and February 2022 maturities traded at levels of 7.10% and 7.40% to 7.50% respectively.

The total secondary market Treasury bond/bill transacted volume for 22nd November 2021 was Rs.0.9 billion.

In money markets, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out amounts of Rs.23.05 billion and Rs.3.00 billion by way of overnight and 3 day repo auctions respectively at weighted average rates of 5.99% and 5.97% while an amount of Rs.71.19 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 5.00%. The net liquidity deficit increased to Rs.233.68 billion yesterday as an amount of Rs.330.92 billion was withdrawn from Central Banks SLFR (Standard Deposit Facility Rate) of 6.00%. The weighted average rates on overnight Call money and REPO remained mostly unchanged at 5.93% and 5.97% respectively.

USD/LKR 

In the Forex market, the USD/LKR rate on spot contracts continued to trade at a level of Rs.203.00 while the overall market remained inactive yesterday.

The total USD/LKR traded volume for 22nd November 2021 was US $ 56.05 million.

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