Home / Financial Services/ 364 day bill weighted average enters single digits for first time in over six months

364 day bill weighted average enters single digits for first time in over six months


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 11 April 2019 00:00

Facebook

 


 

  • Secondary bond market rates decrease once again

By Wealth Trust Securities

The 364 day bill weighted average was seen breaking and going below the psychological level of 10.00% for the first time since 26 September 2018 to record 9.99% at its weekly auction conducted yesterday. The drop of 16 basis points on the 364 day bill was followed by dips of 15 and 21 basis points on the 91 day and 364 day bills respectively to 9.09% and 9.29%. The exact total offered amount of Rs. 25.00 billion was met at the auction with the total bids to total offer ratio increasing to 3.14: 1. 

In the secondary bond market, yields were seen dipping yesterday across the curve on the back of renewed buying interest. The two 2021’s (i.e. 01.03.21, 15.12.21) and 15.03.24 saw volumes change hands within the range of 10.20% to 10.36%, 10.25% to 10.50% and 10.85% to 10.92% respectively. In addition, the maturities of 01.05.19, 01.05.20, two 2021’s (i.e. 01.05.21 and 01.08.21), 15.03.22, 15.03.23, 01.06.26, 15.01.27 and 01.05.29 were traded at levels of 9.20% to 9.25%, 10.12%, 10.25% to 10.50%, 10.30% to 10.38%, 10.50%, 10.77%, 11.05% to 11.10%, 11.07% to 11.08% and 11.26% to 11.30% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 9 April was Rs. 10.79 billion. 

In the money market, the OMO Department of the Central Bank injected liquidity by way of an overnight and seven day repo auction, for amounts of Rs. 5.00 billion and Rs. 2.40 billion respectively, at weighted averages of 8.51% and 8.53%, as the net liquidity shortfall in the system stood at Rs. 7.55 billion. The OMO Department also infused a further amount of Rs. 4.50 billion by way of a 14 day term repo auction at a weighted average rate of 8.55%, valued today. The call money and repo rates averaged 8.51% and 8.54% respectively.

Rupee appreciates marginally

Meanwhile in Forex markets, the USD/LKR rate on spot contracts appreciated marginally yesterday to close the day at Rs. 174.60/70 against its previous day’s closing level of Rs. 174.70/85 on the back of inward remittances outweighing import demand.

The total USD/LKR traded volume for 9 April was $ 103.36 million.

Some forward USD/LKR rates that prevailed in the market were: 1 month - 175.60/80; 3 months - 177.40/60; 6 months - 180.30/50.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Difference between a woman and a man (yin and yang) and finding solutions to violence in society

Thursday, 18 July 2019

This is not at all a philosophical discourse on gender differences, or the complementary roles of yin and yang (women and men) in social or biological formation. This is also not to speak about who is superior among the two. This is just an observati


I wish Sajith Premadasa had taken up a challenging ministry to showcase his prowess

Thursday, 18 July 2019

Expectations, father and son Sajith Premadasa has put his hands up for leadership in the party and for nomination by the United National Party in the forthcoming presidential elections. I wish Sajith had tested himself, and had given the public a cha


Foreign Affairs and Defence to be one portfolio?

Thursday, 18 July 2019

Unless we are all suffering from dementia, the last experience with a foreign military on our soil should be very clear in our heads. The Indian Peace Keeping Force landed in Sri Lanka to supposedly bring peace to the war-torn country when the LTTE t


Federer lessons for Sri Lanka tourism

Thursday, 18 July 2019

The Wimbledon Men’s Final in 2008 was termed as the best match the world has seen between the two arch rivals Federer and Nadal. But, what we saw last Sunday between the two of them after 11 years sure shocked the world. Many just asked the questio


Columnists More