364-day bill average decreases for a fourth consecutive week

Thursday, 21 June 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The 364-day bill weighted average was seen decreasing for a fourth consecutive week at its weekly auction conducted yesterday recording a dip of 07 basis points to 9.37%, closely followed by the 91 day and 182 day maturities by 02 basis points each to 8.32% and 8.85% respectively.

The total offered amount of Rs.14 billion was successfully accepted as the ratio of total bids received to total offered amount stood at 3.75:1.

In the secondary bond market, yields were seen holding steady with the maturities of 01.03.21, 01.05.21 and 15.03.23 changing hands at levels of 9.95%, 10.05% and 10.42% to 10.43% respectively.

On the long end of the curve, 15.06.27 and 01.09.28 were seen changing hands within daily highs of 10.77% and 10.80% respectively to lows of 10.70% each. In the secondary bill market, October 2018, February and March 2019 maturities were traded at levels of 8.40%, 9.10% and 9.23% to 9.26% respectively.

The total secondary market Treasury bond transacted volume for 19 June was Rs. 9.83 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 18 billion at a weighted average of 8.48%, by way of an overnight reverse repo auction as the net deficit in the system reduced to Rs. 12.95 billion yesterday. The overnight call money and repo rates averaged 8.46% and 8.40% respectively.

Rupee closes steadily

The rupee on spot contracts dipped to an intraday low of Rs. 160.16 in morning hours of trading on the back of continued importer demand before bouncing back to close the day steady at levels of Rs.159.95/05 in compared to its previous day’s closing level.

The total USD/LKR traded volume for 19 June was $ 56.60 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 160.75/90; three months - 162.30/50; six months – 164.70/00.