Stock of T-Bills and T-Bonds held by foreigners show marginal increase

The outstanding stock of T-Bills and T-Bonds held by foreigners has increased by 6.64 per cent in rupee terms during the reporting week compared to the week before, the Economic Indicators report of the Central Bank states.

During the week, a slight decline was observed in the primary market yields of T-Bills . However, a mixed behavior was observed in the yields of T-Bonds in the secondary market, it notes.

The weekly T-Bill auction was oversubscribed by 2.08 times during the reporting week. The total volume of secondary market transactions in T-Bills and T-Bonds has decreased by 4.75 per cent in the reporting week compared to the week before, the report adds.

It further states that the Weekly Average Weighted Prime Lending Rate (AWPR) for the week ending 20th October 2023 decreased by 32 bps to 13.68 per cent compared to the previous week. The reserve money increased compared to the previous week mainly due to the increase in the deposits held by the commercial banks with the Central Bank. The total outstanding market liquidity was a deficit of Rs. 6.724 bn by 20th October 2023, compared to a deficit of Rs. 12.225 bn by the end of last week.