Click here to view the article
Daily report for the 04th December 2024 – Courtesy Wealth Trust Securities Ltd
- Rs 192.50 Bn T-Bill Auction Fully Subscribed; Rates Broadly Steady
- Secondary Bond Market Yields Stable; Activity Moderate
- Rupee appreciates slightly
At the weekly Treasury Bill auction conducted yesterday, weighted average rates were seen holding broadly steady. Accordingly, the weighted average rates on the 91-day tenor remained unchanged at 8.73% and the 364-day tenor at 9.08%. However, the weighted average yield on the 182-day tenor declined by 03 basis points to 8.94%. Total bids received exceeded the offered amount by 2.09 times, and the entire Rs 192.50 billion on offer was successfully raised at the 1st phase.
The 2nd phase of subscription for the auction will be opened on the 91- and 364- day tenors at the weighted average rates until close of business of the day prior to settlement (i.e., 4.00 pm on 05.12.2024). Given below are the details of the auction;
The Secondary Bond Market yesterday saw yields hold broadly steady, with the notable exception being 2027 tenors which saw concentrated buying interest push rates lower. Trading activity and transaction volumes continued to be observed at moderate levels as the market was seen going through a consolidation phase.
The 15.12.26 maturity was seen trading within the range of 9.45%-9.43%. The 01.05.2, 15.09.27 and 15.10.27 maturities saw yields decline from intraday highs to lows of 10.17% to 10.15%, 10.25%-10.15% and 10.30%-10.22% respectively. The 15.02.28, 01.05.28 and 01.07.28 maturities were seen trading at the rates of 10.51%-10.48%, 10.60%-10.53% and 10.60% respectively. The 15.09.29 maturity was observed changing hands within the range of 10.95%-10.90% and the 01.12.31 maturity within the range of 11.40%-11.43%.
The total secondary market Treasury bond/bill transacted volume for 03rd December was Rs. 10.99 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 8.13% and 8.36% respectively.
The DOD (Domestic Operations Department) of Central Bank injected liquidity by way of an overnight reverse repo auction for Rs. 10.00 billion at the weighted average rate of 8.16% respectively.
The net liquidity surplus stood at Rs. 222.08 billion yesterday. Rs 0.23 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.50%, while an amount of Rs. 232.31 billion was deposited at the Central Banks SDFR (Standard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 slightly to Rs. 290.40/290.50 against its previous day’s closing level of Rs.290.50/290.55.
The total USD/LKR traded volume for 03rd December was US $ 66.35 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)