Government Securities Market (Week ended September 30, 2022)

2 October, 2022

The trading week ending 30th September 2022 saw weighted average rates on all auctioned Treasury Bill and Bond maturities either holding or crossing the 30.00% psychological level while the accepted amounts fell short of the offered amounts.

At the weekly Treasury bill auction conducted on Wednesday, the 91, 182 and 364-day maturities registered weighted averages of 31.94%, 30.59% and 29.85% while the total accepted amount fell short of the total offered amount for the first time in three weeks. An amount of Rs 81.68 billion was accepted against an offered amount of Rs 85 billion.

The weighted average rates on the 3-Y, 5-Y and 10-Y maturities crossed the 30.00% psychological level at its primary auctions conducted on Thursday where only an amount of Rs.127.31 billion was accepted in total against its total offered amount of Rs.145 billion. The averages came in at 30.95%, 31.50% and 30.09%.

In the secondary bond market, 3Y and 10Y maturities which were traded at levels of 29.00% and 29.48% to 29.75% respectively prior to the bond auctions were seen changing hands at levels of 30.96% to 31.50% and 30.00% following auction outcomes. The 5-Y maturity traded at levels of 31.20% to 32.00% subsequent to its auction outcome as well.

The Colombo Consumer Price Index (CCPI; Base 2013=100) for the month of September increased further to a high of 69.8% on its point to point against its previous month’s figure of 64.3%. The annual average also increased to 33.4% from 28.00%.

The daily secondary market Treasury bond/bill transacted volumes for the first four trading days of the week averaged Rs.33.97 billion.

In money markets, the weighted average rate on repo was at 15.50% for the week while the total outstanding liquidity deficit registered at Rs. 568.46 billion by the end of the week against its previous weeks of Rs. 569.85 billion.

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

Courtesy: Wealth Trust Securities Ltd

– Sunday Observer Sri Lanka

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