Weekly averages stay muted

By Wealth Trust Securities

The weekly Treasury bill auction saw the weighted average on the 91 day bill dip for the first time in eleven weeks as considerable demand for it reflected in a dip of one basis point (bp) to 8.87%. 

However, the weighted averages of the 182 day and 364 day bills continued to edge up at a slow pace, this time around by three bp and one bp respectively to 9.89% and 10.56%. Only a total amount of Rs.15.2 billion was accepted against a total offered amount of Rs.22 billion. 

In secondary bond markets yesterday, buying interest towards the latter part of the day saw yields dip marginally. The liquid maturities of 01.01.24 and 01.06.26 saw its yields dip to intraday lows of 12.55% and 12.70% respectively against its days opening highs of 12.60% and 12.80% while on the short end on the curve, the 01.05.19 maturity was seen changing hands within the range of 11.68% to 11.72%. 

Meanwhile in money markets, call money and repo rates averaged 8.20% and 8.04% respectively as the Open Market Operations (OMO) Department of the Central Bank increased the injected volume on an overnight basis by Rs.12 billion to Rs.30 billion at a weighted average rate of 7.99%. 

Rupee dips marginally 

The USD/LKR rate on the active one week forward contract was seen closing the day marginally lower at levels of Rs.147.10/30 against its previous day’s closing levels of Rs.146.90/20 on the back of importer demand. The total USD/LKR traded volume for 4 July was $ 44.05 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 147.55/65; three months – 149.20/40; and six months – 151.20/40.