364 day bill average increases further

By Wealth Trust Securities

This week’s Treasury bill auction witnessed a similar outcome as its previous week, with all bids for the 91 day and 182 day bills being rejected, with only the 364 day bill being accepted as its weighted average increased for a fifth consecutive week. 

However, out of the total offered amount of Rs.30 billion only an amount of Rs.21.16 billion was accepted on the 364 day bill this week in comparison to its previous week at where the total offered amount of Rs.30 billion was accepted on the single maturity.  The increase was 07 basis points on the 364 day bill weighted average while it was the first occurrence in twelve (12) weeks that the total accepted amount dropped short of the total offered amount with the bid to offer ratio dipping to 2.41:1. 

In the secondary bond market, the liquid 01.03.21 maturity continued to change hands within a thin range of 9.93% to 9.98% yesterday while the 01.08.24 and 15.06.27 maturities were seen trading at levels of 10.30% and 10.40% respectively, pre-auction. In the secondary bill market, July, August, September and October 2018 maturities changed hands at levels of 8.68%, 8.78%, 8.75% to 8.82% and 8.95% to 9.00%, pre-auction.

The total secondary market Treasury bond/bill transacted volumes for 6 March was Rs.9.07 billion.

In money markets, the overnight call money and repo rates averaged at 8.15% and 7.57% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs.12.2 billion on an overnight basis by way of a Repo auction at a weighted average of 7.26%. The net surplus liquidity in the system stood at Rs.23.77 billion yesterday.

Rupee loses further

The USD/LKR rate on spot contracts was seen depreciating further to close the day at Rs.155.30/40 against its previous day’s closing level of Rs.155.05/12 on the back of continued importer dollar demand.

The total USD/LKR traded volume for 6 March was $ 77.50 million.

Some of forward USD/LKR rates that prevailed in the market were: one month – 156.20/35; three months – 157.80/95; and six months – 160.30/45.