Weekly T-bill averages continue to decrease

By Wealth Trust Securities

The weighted average yields at yesterday’s weekly Treasury bill auction declined across the board, with the total offered amount of Rs. 20.5 billion being successfully subscribed. The 364-day bill continued to dominate the auction as it reflected the highest accepted amount of Rs. 12.88 billion or 63% of the total accepted amount with its weighted average yield decreasing by seven basis points to 9.16%. The 91-day and 182-day maturities were down by one and four basis points, respectively, to 8.16% and 8.70%. 

In the secondary bond market, maturities consisting of  the 2019’s (i.e. 01.07.19 and 15.09.19), 2021’s (i.e. 01.03.21, 01.05.21 and 01.08.21), 01.10.22, 15.03.23 and 01.08.24 were seen changing hands at levels of 9.10% to 9.13%, 9.50% to 9.62%, 9.83%, 9.84% to 9.88% and 9.95% to 9.98%, respectively, while in the secondary bill market, February, March, May, July and August 2019 maturities were traded at levels of 8.70%, 8.80%, 9.00%, 9.12% and 9.10%, respectively. 

The total secondary market Treasury bond/bill transacted volumes for 7 August was Rs. 4 billion.

In money markets, overnight call money and repo rates averaged 8.26% and 8.17%, respectively, as the net liquidity surplus stood at Rs. 58.42 billion.

Rupee loses  

The USD/LKR rate on spot contracts depreciated yesterday to close the day at Rs. 159.92/00 against its previous day’s closing levels of Rs. 159.77/82 on the back of importer demand. The total USD/LKR traded volume for the 7 August was $ 53.90 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 160.70/85; 3 Months - 162.35/55 and 6 Months - 164.75/95.