91 day bill average crosses 9.00% for the first time in 21 weeks

Thursday, 26 January 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The 91 day bill weighted average was seen jumping above the 9.00% physiological level for the first time in 21 weeks at its weekly auction held yesterday while the 182 day bill increased by two basis points to 10.07%, recording its eighth consecutive week of increases on the two maturities.

The 364-day bill average remained unchanged at 10.37%, reversing an upward trend witnessed over the past seven weeks. The 91-day bill dominated the auction once again yesterday as it represented 56% of the total accepted amount of Rs. 27.5 billion.

Given below are the details of the auction,

The secondary bond market continued to be inactive as yields were seen increasing on the maturities of 01.07.19 and 01.03.21 to intraday highs of 12.00% and 12.40% respectively against its opening levels of 11.80/95 and 12.25/35 on the back of thin volumes. Given below are the closing secondary market yields for the most frequently traded maturities.

Meanwhile in money markets, the overnight call money and repo rates remained mostly unchanged to average at 8.39% and 8.43% respectively as net surplus liquidity increased to Rs. 62.28 billion. The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen mopping up an amount of Rs. 63.00 billion on an overnight basis by way of a Repo auction at a W. Avg of 7.54%.

Rupee appreciates further

The dollar/rupee rate on two week and one month forward contracts were seen appreciating further yesterday to close at Rs. 150.85/00 and Rs. 151.30/40 against its previous day’s closing levels of Rs. 150.95/05 and Rs. 151.40/50.

The total USD/LKR traded volume for 24 January 2017 was $ 67.27 million.

Given below are some forward USD/LKR rates that prevailed in the market.

3Months- 153.15/30 and 6 Months - 155.50/65