Subdued weekly auction outcome

• Secondary market bond yields steady

By Wealth Trust Securities

The results at the weekly Treasury bill auction conducted yesterday recorded subdued outcomes with the weighted averages of the 182 day and 364 day bills holding steady while the 91 day bill weighted average dipped.  

The 182 and 364 day weighted averages were at 7.73% and 8.41% respectively while the 91 day dipped by 2 basis points to 7.58%. The total offered amount of Rs.21.5 billion was successfully met at the auction as the total bids to offer ratio stood at 2.32:1.  

The activity in the secondary bond market remained moderate yesterday with trades witnessed across the curve. The maturities of 15.03.23, 15.09.24 and 15.09.34 were seen changing hands at levels of 9.70% to 9.75%, 10.18% and 10.70% to 10.72% respectively against its previous day’s closing levels of 9.70/85, 10.16/18 and 10.71/75. In addition, the 01.03.21, 15.12.21, 15.05.23, 01.08.24 and 01.05.28 maturities were seen trading at levels of 8.68%, 8.70%, 9.75%, 10.10% to 10.15% and 10.48% as well. 

The total secondary market Treasury bond/bill transacted volume for 8 October was Rs.6.8 billion. 

Meanwhile in money markets, the overnight call money and repo rates averaged 7.47% and 7.49% respectively as the overnight net liquidity surplus in the system increased to Rs.15.02 billion yesterday.

Rupee loses once again

The USD/LKR rate on spot contracts was seen depreciating once again yesterday to close the day at Rs.180.50/60 against its previous day’s closing levels of Rs.180.30/45 on the back buying interest by banks.

The total USD/LKR traded volume for 8 October was $ 112.88 million

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.15/35; three months – 182.30/60; six months – 184.15/55.