Secondary market transactions in T-Bills and T-Bonds increased by 10.91%

The total volume of secondary market transactions in T-Bills and T-Bonds increased by 10.91 per cent last week, compared to the week before, according to the Weekly Economic Indicators of the Central Bank of Sri Lanka.

Primary market T-Bill yield rates decreased compared to the previous week, and similarly the T-Bill and T-Bond secondary market yield curves shifted downward, according the report.

It further said: “The outstanding stock of T-Bills and T-Bonds held by foreigners depicted a decrease of 1.1 per cent in rupee terms during the reporting week compared to the week before.”

“The weekly T-Bill auction was oversubscribed by 1.76 times during the reporting week.”

“On 09th August 2023, the Central Bank decided to reduce the Statutory Reserve Ratio (SRR) applicable on all rupee deposit liabilities of licensed commercial banks (LCBs) by 2.0 percentage points to 2.00 per cent, with effect from the reserve maintenance period commencing on 16th August 2023.”

“Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 11th August 2023 decreased by 29 bps to 16.67 per cent compared to the previous week.”

“The reserve money decreased compared to the previous week mainly due to the decrease in the deposits held by the commercial banks with the Central Bank. The total outstanding market liquidity was a deficit of Rs. 145.939 bn by 11.08.2023, compared to a deficit of Rs. 121.278 bn by the end of last week.”