Weekly weighted averages continue to edge up

By Wealth Trust Securities

The weekly weighted averages were seen edging up for a second consecutive week yesterday as the total accepted amount was seen falling short of the total offered amount for a third consecutive week. The 364 day bill recorded the highest increase of 05 basis points to 10.24% followed by the 182 day bill by 02 basis points to 9.48%, while all bids for the 91 day bill were rejected. Given below are the details of the auction. 

Activity in the secondary bond market remained moderate yesterday as buying interest in the morning hours of trading saw yields dip. The liquid maturities of 15.09.19, 01.05.20 and 01.03.21 saw its yields hit intraday lows of 11.52%, 11.65% and 11.67% respectively before rebounding once again to intraday highs of 11.55%, 11.70% and 11.76%. 

In addition, the 01.01.24 and the two 2025 maturities (15.03.25 and 01.08.25) were seen changing hands within the range of 11.85% to 11.88% and 11.90% to 11.95% respectively as well. Given below are the closing, secondary market yields for the most frequently traded maturities.

The overnight call money and repo rates remained steady to average 8.42% and 8.68% respectively as the net deficit stood at Rs. 28.93 billion yesterday. An amount of Rs. 27 billion was injected into the system by the OMO department of Central Bank by at a weighted average of 8.50%.

 Rupee holds steady

 In Forex markets, the spot next contract was seen closing the day broadly steady at Rs. 147.90/05 yesterday as trading on it was limited with selected selling seen at Rs. 147.45 as well. The total USD/LKR traded volume for 25 October 2016 was $ 86.06 million. Given below are some forward USD/LKR rates that prevailed in the market.