364-day bill average yield decreases once again

By Wealth Trust Securities

The weighted average yield of the 364 day bill at yesterday’s weekly Treasury bill auction decreased once again with the total bids to offer ratio increasing to 2.97:1. The 364 day maturity  recorded a 01 basis point drop to 8.99% while the 91 day bill dropped by 6 basis points to 8.03%. The 182 day bill was not offered.

Meanwhile, the secondary bond market remained active yesterday, with yields decreasing for a second consecutive day, mainly on the short tenure maturities. 

The 15.09.19 dropped to daily lows of 9.01% against the previous day’s closing levels of 9.05/10, while the 2020 maturities (i.e. 01.05.20 and 15.12.20) dropped to lows of 9.30% and 9.38% respectively as against 9.25/35 and 9.35/45. Furthermore, the 2021’s (i.e. 01.03.21, 01.05.21 and 01.08.21) and 01.10.22 reduced to lows of 9.53%, 9.55%, 9.60% and 9.85% respectively. 

The total secondary market Treasury bond/bill transacted volumes for 28 August was Rs.9.48 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka, drained out an amount of Rs.2.65 billion on an overnight basis at a weighted average of 7.95% by way of a repo auction, as the net surplus liquidity increased to Rs.17.62 billion. 

Excess liquidity was also mopped up by way of a seven day term repo auction, where an amount of Rs.6.5 billion was drained out at a weighted average of 7.99%. The overnight call money and repo rates averaged 7.86% and 7.78% respectively.

 Rupee loses further

 In the Forex market, the USD/LKR spot rate depreciated further to close the day at Rs.161.40/45 against its previous day’s closing levels of Rs.161.25/35 on the back of buying interest from banks.

The total USD/LKR traded volume for 28 August was $ 55.30 million. Given are some forward USD/LKR rates that prevailed in the market: one month – 162.15/35; three months – 163.70/90; six months – 166.15/35.