Weekly weighted averages decrease for second consecutive week

Demand increases to 46-week high

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction continued its decreasing trend for a second consecutive week, driven by high demand. 

The total offered amount of Rs. 10 billion was successfully accepted as the ratio of total bids received to total offered amount increased to a 46-week high of 5.57:1. 

The 364-day bill reflected the sharpest decline of 13 basis points to 9.49% followed by the 182-day bill by 06 basis points to 8.87% while the 91 day bill remained unchanged at 8.34%. 

In the secondary bond market, the maturities of 01.07.19, 15.09.19, 01.03.21, 15.03.23 and 01.08.24 were seen changing hands at levels of 9.58% to 9.60%, 9.69%, 9.90% to 9.97%, 10.40% to 10.42% and 10.50% to 10.54% respectively while in the secondary bill market, February, March, April and May 2019 maturities were traded at levels of 9.27% to 9.32%, 9.25% to 9.45%, 9.40% and 9.47% to 9.54% respectively.

The total secondary market Treasury bond transacted volume for 5 June was Rs.6.83 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 of 8.50%, by way of an overnight reverse repo auction as the net deficit in the system stood at Rs. 13.27 billion yesterday. The overnight call money and repo rates averaged 8.04% and 8.08% respectively.

Rupee losses further

 The USD/LKR rate on spot contracts depreciated further yesterday to close the day at Rs. 158.80/85 against its previous day’s closing levels of Rs. 158.60/70, on the back of continued importer demand. The total USD/LKR traded volume for 5 June was $ 34.00 million. 

Given are some forward USD/LKR rates that prevailed in the market: One month – 159.60/70; three months – 161.15/30; six months – 163.45/60.