Dull sentiment in secondary bond markets continue

Wednesday, 22 February 2017 00:00 -     - {{hitsCtrl.values.hits}}

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  • Primary market rates continue to increase

The weighted averages at yesterday’s weekly Treasury bill auction were seen increasing on all three maturities for a third consecutive week with its total successful bids recording an low volume of Rs. 7.8 billion against its total offered volume of Rs. 25.5 billion. 

The 91 day maturity increased the most by 10 basis points to 9.32% closely followed by the 182 day maturity by seven basis points to 10.19% and the 364 day maturity by three basis points to 10.58%. The total bids to offer ratio dipped to a 14-week low of 1.45:1 as well. 

Meanwhile, activity in secondary bond markets remained dull yesterday with limited trades taking place on the 01.03.21, 01.05.21 and 01.08.21 maturities at levels of 12.48%, 12.70% and 12.62% respectively. 

In money markets, overnight call money and repo rates averaged 8.48% and 8.76% respectively as the net deficit was seen increasing to Rs. 47.37 billion yesterday. The OMO department of the Central Bank infused an amount of Rs. 41.23 billion at a weighted average rate of 8.47% by way of an overnight reverse repo auction.

Rupee continues 

to depreciate  

In Forex markets yesterday, the USD/LKR rate on active two weeks and one month forward contracts were seen depreciating further to close the day at Rs. 152.85/00 and Rs. 153.20/35 respectively against its previous day’s closing levels of Rs. 152.55/65 and Rs. 152.95/15, while the spot reference rate was increased to Rs. 151.25. The total USD/LKR traded volume for 20 February 2017 was $ 89.66 million.

Some of the forward USD/LKR rates that prevailed in the market were 3 Months - 154.50/75 and 6 Months - 156.95/25. 

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