Steep declines in weekly weighted averages continue

Thursday, 27 July 2017 01:12 -     - {{hitsCtrl.values.hits}}

364-day bill W. Avg dips below 10.00% for the first time in 67 weeks

Secondary market bond yields edge up marginally ahead of auctions

The steep declines in the weekly Treasury bill weighted averages were seen continuing for a second consecutive week, extending its declining trend for a fourth consecutive week, with the 364 day bill average dipping below the 10.00% psychological level for the first time since 21 March 2016 to record 9.99%. 

The 182-day bill recorded the sharpest decline of 30 basis points to 9.71%, closely followed by the 364 by 19 basis points while the 91-day bill dipped by 12 basis points to 9.44%. The 182-day bill continued to dominate the auction as it represented 53% of the total accepted amount. Given below are the details of the auction. However, in contrast to the primary auction outcome, secondary market bond yields were seen increasing towards the end of the day mainly on the 15.12.2021 maturity as its yield was seen hitting an intraday high of 10.75% against its opening low of 10.70%. 

This was ahead of today’s Treasury bond auctions of Rs. 22 billion which will consist of Rs. 11 billion each on a 4.11 year maturity of 01.07.2022 and a 9.10 year maturity of 15.06.2027.  The previously recorded weighted average on the 15.06.27 maturity was 11.37%.

The total secondary market Treasury bond transacted volume for 25 July 2017 was Rs. 3.74 billion.

In money markets, the net surplus liquidity was seen increasing to Rs. 9.76 billion yesterday while no bids were received for the overnight repo auction of Rs. 11 billion conducted by the OMO Department of the Central Bank. Call money and repo remained steady to average 8.72% and 8.74% respectively.

Rupee dips marginally

 The USD/LKR rate on spot contracts closed the day marginally down at Rs.153.58/63 yesterday on the back of mild importer demand.

The total USD/LKR traded volume for the 25 July 2017 was $ 107.49 million.

 

 

 

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