364 day bill weighted average increases for second consecutive week

• Bids-to-offer ratio dips to 12-week low
• Rupee dips

The 364 day bill weighted average was seen increasing for a second consecutive week at its auction conducted yesterday, recording a six basis point jump to 8.41% while the 182 day bill increased as well by two basis points to 7.67%.  

The 91 day bill weighted average remained steady at 7.49% as the total bids received on all three maturities against its total offered amount dipped to a 12-week low of 1.86:1. Furthermore, the accepted bid volume on the 364 day bill was seen falling short of its offered amount for a third consecutive week. Nonetheless, the total offered amount of Rs. 20 billion was met by way of additional volumes being accepted on the 91 day bill.  

In secondary bond markets, yields were seen increasing subsequent to auction results with the liquid maturities of 15.09.24 and 15.10.27 hitting highs of 10.05% and 10.29% respectively against its previous day’s closing levels of 10.00/05 and 10.27/30. In addition, the 2022’s (i.e. 15.03.22 and 15.10.22), 15.03.23 and two 2024’s (i.e. 15.03.24 and 15.06.24) changed hands at levels of 9.05% to 9.20%, 9.55% and 10.00% to 10.02% respectively as well.  

In secondary bills market, the December 2019, May 2020, July 2020, August 2020 and October 2020 maturities were traded at levels of 7.44%, 7.65% to 7.75%, 8.00% to 8.06%, 8.05% to 8.11% and 8.36% respectively.

The total secondary market Treasury bond/bill transacted volume for 5 November was Rs. 6.57 billion. 

Meanwhile, in money markets, the overnight call money and repo rates averaged 7.48% and 7.53% respectively as the Open Market Operations (OMO) Department of the Central Bank injected an amount of Rs. 2.8 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.55%. The overnight net liquidity surplus in the system stood at Rs. 14.73 billion yesterday.

Rupee dips once again  

 In the Forex market, the rupee on spot contracts were seen depreciating for the first time in five days as it was seen closing the day at Rs. 180.70/80 yesterday against its previous day’s closing level of Rs. 180.20/40 on the back of buying interest by banks.

The total USD/LKR traded volume for 5 November was $ 51.83 million.

Some forward USD/LKR rates that prevailed in the market: one month - 181.25/45; three months - 182.35/65; six months - 184.20/50.