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Benchmark 364-day bill yield decreases further

Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 13 June 2018 00:07

By Wealth Trust Securities

The weighted average yields at yesterday’s weekly Treasury bill auction continued their decreasing trend for the third consecutive week, driven by high demand. 

The total offered amount of Rs. 12 billion was successfully accepted with significant demand shown on the 364-day maturity, with its yield declining by five basis points to 9.44%. The yields of the 182-day and 91-day maturities remained unchanged at 8.87% and 8.34% respectively.

In the secondary bond market, the shorter maturities of 01.07.19, 15.09.19, 01.03.21, 15.3.23 and 01.09.28 were seen changing hands at levels of 9.93% to 9.95% and 10.45% and 10.67% to 10.70% respectively, while in the secondary bill market, 18 August, 18 October, February and April 2019 maturities were traded at levels of 8.25% and 8.50%, 9.25% and 9.33% to 9.35% respectively.

The total secondary market Treasury bond transacted volume for 11 June 2018 was Rs. 4.37 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 10 billion at a weighted average yield of 8.49%, by way of an overnight reverse repo auction as the net deficit in the system stood at Rs. 7.55 billion. The overnight call money and repo rates averaged 8.32% and 8.38% respectively.

Greenback holds below the 160 mark

The USD/LKR rate quoted on spot contracts was Rs. 159.65/75 against its previous day’s closing levels of Rs. 159.50/90, on the back of continued importer demand.

The total USD/LKR traded volume for 11 June 2018 was $ 69.50 million. Some of the forward USD/LKR rates that prevailed in the market were one month - 160.45/65; three months - 162.00/30 and six months - 164.25/55.


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