Total amount accepted at primary Treasury bill auction drops to five week lows

By Wealth Trust Securities

The total amount accepted at the weekly Treasury bill auction dropped to five week lows of Rs. 14.5 billion, reflecting only 63% of the total offered amount of Rs. 23 billion.

The weighted averages of the 182 day and 364 day maturities increased by 2 basis points each to 9.94% and 10.74% respectively while the weighted average of the  91 day maturity remained unchanged at 9.01%. 

In the secondary bond market, yields of the liquid maturities of 15.09.19, 01.03.21, 01.08.24 01.08.25 and the two 2026’s (i.e. 01.06.26 and 01.08.26) were seen increasing to daily highs of 11.52%, 11.92%, 12.25%, 12.50%, 12.54% and 12.55% respectively when compared against the previous day’s opening levels of 11.45/50, 11.86/90, 12.18/25, 12.35/42 and 12.47/52 each . 

In the meantime, treasury bills maturing in February 2017 and August 2017 were quoted at levels of 9.70/85 and 10.75/85 respectively. 

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.40% and 8.48%, as an amount of Rs. 45 billion was injected on an overnight basis at a weighted average of 8.34%. The net liquidity shortfall in the system stood at Rs. 46.47 billion. 

Rupee remains broadly steady   

The USD/LKR rate on spot, spot next and one week forward contracts remained mostly unchanged to close the day at Rs. 145.50/55, Rs. 145.58/62 and Rs. 145.72/77 respectively.

The total USD/LKR traded volume for the 15th of August 2016 was $ 48.35 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 146.40/50; three months – 148.00/20 and six months – 150.40/60.