91 and 182 day bill Weighted Averages increase to four-year highs

Thursday, 9 March 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weighted averages on the 91 day and 182 day bills at yesterday’s weekly bill auction were seen increasing for a fifth consecutive week to four-year highs of 9.47% and 10.39% respectively.

The 182 day bill reflected the highest increase of 12 basis points while the 91 day recorded an increase of nine basis points followed by the 364 day bill increasing by eight basis points to a 27-week high of 10.74%. The total accepted amount increased to a three-week high of Rs. 14.4 billion but still fell short of the total offered amount of Rs .25 billion. The total bid to offer ratio increased to a three-week high of 1.9:1 as well.

Activity in the secondary bond market dried up once again yesterday as two-way quotes were seen increasing and widening. A limited amount of activity was witnessed on the maturities of 15.01.2019 and 01.05.2021 at levels of 12.10% and 12.95% respectively.

In money markets, the overnight call money and repo rates remained steady to average at 8.50% and 8.58% respectively as the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 14.00 billion at a weighted average of 8.50%, by way of an overnight reverse repo auction. The net deficit in the system increased further to Rs. 14.76 billion yesterday.

Rupee depreciates

once gain

The USD/LKR rate on the active two weeks and one month forward contracts lost ground yesterday to close the day at levels of Rs. 152.00/15 and Rs. 152.50/70 respectively against the previous day’s closing levels of Rs. 151.85/00 and Rs. 152.50/65 on the back of continued seasonal importer demand.

The total USD/LKR traded volume for 7 March 2017 was $ 65.00 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 154.60/80 and six months - 157.45/65.