Weekly averages increase for a sixth consecutive week

All three weighted averages at yesterday’s weekly Treasury bill auction were seen increasing for a sixth consecutive week with the total accepted amount increasing to five weeks high of Rs.18.15 billion against its total offered Rs.18 billion. The 91 day bill reflected the sharpest increase of 19 basis points to 6.78% closely followed by the 182 day and 364 day bills by 13 and 06 basis points respectively to 7.06% and 7.48%.

Nevertheless, secondary market bond yields continued to decrease mainly on the longer end of the yield curve with the 15.03.2035 and the 01.01.2041 maturities hitting intraday lows of 11.15% and 11.40% respectively against its days opening highs of 11.25% and 11.60%. In addition, a limited amount of activity was seen on the 01.08.2025 maturity as well within the range of 10.73% to 10.77%.

In money markets, the OMO (Open Market Operations) department of the Central Bank drained out an amount of Rs.6.1 billion at a weighted average rate of 6.50% for a period of 14 days as the surplus liquidity in the system stood at Rs.96.14 billion yesterday. The overnight call money and repo rates remained mostly unchanged to average 6.55% and 6.42% respectively.

Rupee appreciates  

The USD/LKR rate on spot contracts appreciated marginally to close the day at Rs.143.75/80 against its previous day’s closing of Rs.143.80/85 on the back of inflows. The total USD/LKR traded volume for the 11th of January 2016 was US $ 45.13 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 144.35/40; 3 Months - 145.45/55 and 6 Months - 147.15/25.