Weekly averages increase once again

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction increased once again, after laps of one week as the total accepted amount at the auction reached a fifty-one (51) week high of Rs.33.62 billion. The weighted averages on the 182 day and 364 day maturities increased by 10 basis points each to 9.63% and 10.27% respectively while on 91 day maturity saw its weighted average increased by 7 basis points to 8.52.

In the secondary bond market yesterday, yields were seen closing the day lower in comparison to its previous day’s closing levels on the back of continued buying interest. Activity centered on the long tenure maturities of 01.06.26, 01.09.28 and 15.05.30 as its yields dipped to intraday lows of 11.72%, 12.00% and 12.01% in morning hours of trading against its opening highs of 11.85%, 12.05% and 12.19%. However, subsequent to the release of auction results yields were seen edging up to levels of 11.80%, 12.05% and 12.10% once again. On the short end of the curve, the 15.11.18 and 01.05.20 maturities were seen changing hands within the range of 11.05% to 11.10% and 11.35% to 11.40% respectively as well. Meanwhile in the secondary bill market, the 182 day and 364 day maturities were offered at levels of 9.53% and 10.30% respectively, post auction.  Meanwhile in money markets, the overnight call money and repo rates averaged at 8.15% and 8.05% respectively as the Open Market Operations (OMO) department of Central Bank continued to inject liquidity for an amount of Rs.10 billion once again at a weighted average rate of 7.95%. The liquidity in the system stood at a net deficit of Rs.12.58 billion.

Rupee steady for 

a second 

consecutive day

 The USD/LKR rate on the active spot next contract remained steady to close the day at Rs.146.10/20 as markets were at equilibrium. The total USD/LKR traded volume for the 03rd of May 2016 was US $ 50.52 million.  Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 146.90/20; 3 Months - 148.55/85 and 6 Months - 150.90/40.