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Daily report for the 07th May 2025 – Courtesy Wealth Trust Securities Ltd
- Rs 130 Bn T-Bill Auction Undersubscribed; Rates Broadly Steady
- Secondary Bond Market Remains Positive
The weekly Treasury bill auction conducted on yesterday went undersubscribed, as only 94.42% or Rs.122.74 billion of its total offered volume of Rs 130 billion was accepted in successful bids. This was despite total bids received exceeding the offered amount by 1.76 times.
The auction saw weighted average yield rates hold broadly steady, with the exception being the 182-day tenor. Accordingly, the weighted average rates on the 91-day tenor and 364-day tenors remained unchanged at 7.65% and 8.30% respectively. However, the weighted average rate on the 182-day tenor increased by 01 basis points to 7.98%
The phase 2 of the auction will be opened for all three maturities at its weighted average rates until close of business on the day prior to settlement (i.e., 3.00 pm on 08.05.25). Given below are the details of the auction;
Meanwhile, the secondary bond market yesterday retained its positive momentum. Market activity and transaction volumes were seen at healthy levels as strong demand was observed on 2027-2031 tenors which saw yields decline further.
The 15.09.27 maturity was seen trading at the rate of 9.35%. The 15.02.28 and 15.03.28 maturity traded down the range of 9.75%-9.70% collectively. The 01.07.28 maturity traded down the range of 9.84%-9.81%. The yield on the 15.10.28 maturity traded down the range of 9.90%%-9.85%. Similarly, the yield on the 15.12.29 maturity declined down the range of 10.28%-10.25%. The 15.03.31 maturity was seen trading down the range of 10.72%-10.70%.
In money markets, the weighted average rates on overnight call money and Repo stood at 7.98% and 7.98% respectively.
The net liquidity surplus increased to Rs. 163.47 billion yesterday. Rs 0.26 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 163.73 billion was deposited at Central Banks SDFR (Standard Deposit Facility Rate) of 7.50%.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 299.37/299.42 as against its previous day’s closing level of Rs. 299.50/299.75.
The total USD/LKR traded volume for 06th May 2025 was US $ 25.15 million.
