182 day bill average breaks 9.00% psychological level for first time in 79 weeks

By Wealth Trust Securities

The downward trend in weighted averages at the weekly Treasury bill auctions continued for a third consecutive week yesterday. 

The 182 day maturity decreased the most by 11 basis points to dip below the 9.00% psychological level for the first time in 79 weeks to record 8.94% while the 364 day bill dipped by 10 basis points to 9.10%. In total an amount of Rs. 22.42 billion was accepted at the auction against its total offered amount of Rs. 23 billion. 

In the secondary bond market yesterday, the downward trend in yields continued with the liquid maturity of 01.08.26 hitting an intraday low of 10.06% against its previous day’s closing levels of 10.10/15. In addition, the maturities of the two 2021’s (i.e. 01.03.21 and 15.12.21), 01.09.28 and 15.05.30 were seen trading at levels of 9.72% to 9.85%, 10.40% to 10.50% and 10.50% 10.55% as well.

The total secondary market Treasury bond/bill transacted volumes for 20 September 2017 was Rs. 9.46 billion.

In money markets, the overnight call money and repo rates averaged 8.04% and 8.00% respectively as the net surplus liquidity in the system increased to Rs. 40.61 billion yesterday. The OMO department of Sri Lanka drained out an amount of Rs. 17.32 billion on an overnight basis by way of a repo auction at a weighted average of 7.26% while all bids for the term repo auction of eight days were rejected.

Rupee appreciates for first time in three days

 The USD/LKR rate on spot contracts was seen appreciating to Rs.152.65/75 yesterday against its previous day’s closing of Rs. 153.10/20 on the back of inward remittances and dollar selling interest by banks.

The total USD/LKR traded volume for 19 September 2017 was $ 25.80 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.35/40; three months - 154.85/00 and six months - 157.00/15.