Primary market rates continue to increase

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction increased across the board for a seventh consecutive week with a total an amount of Rs. 17.06 billion being accepted against its initial total offered amount of Rs. 25.5 billion. 

The 364 day bill dominated the auction as it represented the 53% of the total accepted amount with its weighted average increasing by 16 basis points to 10.98%. The weighted average on the 182 bill too increased by 16 basis points to 10.62% while the 91 day increased by six basis points to 9.63%.

In secondary bond markets, yields remained mostly unchanged yesterday as the liquid maturities of 15.12.21 and 01.08.24 were seen changing hands within the range of 12.47% to 12.55% and 12.75% to 12.80% respectively against its previous day’s closing levels of 12.50/54 and 12.70/80. In addition, the maturities of 01.06.18, 01.07.19, 01.05.21 and 01.08.21 were seen changing hands within the range of 11.18% to 11.22%, 11.85% to 11.88%, 12.40% and 12.45% to 12.53% respectively as well.

The total secondary market Treasury bond transacted volume for 28 March 2017 was Rs. 6.80 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka was seen infusing liquidity for the first time in four days as liquidity in the system turned to a net shortfall of Rs. 11.9 billion yesterday. An amount of Rs. 6.00 billion was infused at a weighted average of 8.73%, by way of an overnight reverse repo auction as the overnight call money and repo rates remained mostly unchanged to average 8.75% and 8.81% respectively.

Rupee remains steady 

The USD/LKR rate on the active two-week forward contracts was seen closing the day mostly unchanged at Rs. 152.65/80 as markets were at equilibrium.

The total USD/LKR traded volume for 28 March 2017 was $ 30.61 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 154.85/00 and six months - 158.10/30.