182 day Treasury bill W. Avg yield decreases for a fifth consecutive week

By Wealth Trust Securities

The persistent demand for Treasury bills at yesterday’s primary auction resulted in the weighted average yield of the 182 day bill to decrease by two basis points to 10.40% while the weighted averages of the 91 day and 364 day maturities remained steady at 9.62% and 10.73% respectively.

The auction successfully attracted an amount of Rs.25.2 billion in total against an offered amount of Rs. 26 billion, with the 182 day bill continuing to dominate the auction representing 53.11% of the total accepted amount. The bid to offer ratio stood at a four-week high of 1:2.97.

In the secondary bond market, yields were seen decreasing further, leading to the release of the bill auction results. Maturities consisting of 15.01.2019, 15.12.21, 01.08.24, 01.08.26 and 15.05.2030 hit lows of 11.00%, 11.45%, 11.63%, 11.66% and 11.89% respectively. Meanwhile in the secondary bill market, 182 day bills were seen quoted at levels of 10.30/39 post-auction.

The total secondary market Treasury bond transacted volume for 23 May 2017 was Rs. 3.6 billion.

In money markets, the overnight call money and repo rates averaged 8.75% and 8.79% respectively as the net surplus liquidity in the system increased to Rs. 21.84 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 22.00 billion on an overnight basis at a weighted average of 7.27% by way of a repo auction.

Rupee remains steady  

In Forex markets, the USD/LKR rate on the active spot next contracts remained mostly unchanged for a second consecutive day, to close at Rs. 152.90/95.The total USD/LKR traded volume for 23 May 2017 was $ 74.40 million.Some of the forward USD/LKR rates that prevailed in the market were one month - 153.00/10; three months - 155.85/95 and six months - 158.85/95.