Weekly averages increase across board

• 364-day bill shoots up to a 77-week high
• Bond yields follow suit

By Wealth Trust Securities

The weekly Treasury bill weighted averages were seen increasing across the board yesterday, following the rejection of all bids the previous week, with the 364-day bill recording a sharp increase of 50 basis points to a 77-week high of 10.89%. The 91-day bill which was accepted after a lapse of two week’s saw its weighted average increase by 17 basis points to 9.65% while the 182-day bill which was offered after two weeks recorded a weighted average of 9.99% against its previous of 9.75%.  The total offered amount of Rs. 16 billion was almost fully accepted across all three maturities with a total bids to offer ratio of 1.66:1.  The secondary market bond yields were seen increasing yesterday with moderate volumes being traded. The 15.07.23 maturity hit an intraday high of 11.50% in comparison to its previous day’s closing levels of 11.38/45. Furthermore, trades on the 01.05.19, 15.09.19, 01.11.19, 01.03.21 and 01.10.22 maturities were witnessed at levels of 10.25%, 10.80% each, 11.10% to 11.20% and 11.50%, respectively, as well. 

The total secondary market Treasury bond/bill transacted volumes for 5 November was Rs. 2.2 billion.

In the money market, the OMO department of Central Bank was seen infusing liquidity by way of an overnight and a seven day term repo auction for successful amounts of Rs.44.65 billion and Rs.15.00 billion respectively at weighted averages of 8.47% and 8.50% as the net liquidity shortage in the system stood at a high of Rs.70.30 billion yesterday. The overnight call money and repo rates remained mostly unchanged to average 8.47% and 8.50% respectively.

Rupee loses further  

The rupee rate on spot contracts were seen losing further yesterday to close at Rs. 174.85/00 against its previous day’s closing level of Rs. 174.45/55 on the back of continued buying interest from banks.

The total USD/LKR traded volume for 5 November was $ 51.70 million.

Some forward USD/LKR rates that prevailed in the market are 1 month – 175.80/10, 3 months – 177.75/15, and 6 months – 180.75/50.