Activity moderates ahead of weekly bill auction

Tuesday, 26 June 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market moderated yesterday ahead of today’s weekly Treasury bill auction, conducted one day ahead due to a shortened trading week. Limited trades took place on the 01.05.21, 15.03.23, 01.08.24 and 01.09.28 maturities within the range of 10.10% to 10.115%, 10.40% to 10.45%, 10.50% to 10.55% and 10.72% to 10.80% respectively.

The bill auction will have on offer a total amount of Rs.14 billion, consisting of Rs.2.5 billion of the 91 day maturity, Rs.3.5 billion of the 182 day maturity and a further amount of Rs.8 billion of the 364 day maturity. At last week’s auction, weighted averages decreased across the board with the 91 day, 182 day and 364 day maturities reflecting decreases of 02 basis points each and 07 basis points respectively to 8.32%, 8.85% and 9.37%.

The total volume of bonds transacted in the secondary market on 22June was Rs.8.04 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs.8.00 billion at a weighted average yield of 8.50%, by way of an overnight reverse repo auction as the net liquidity in the system stood at a deficit of Rs.4.10 billion yesterday. The overnight call money and repo rates averaged 8.46% and 8.44% respectively.

Rupee appreciates further

The USD/LKR rate on spot contracts appreciated further yesterday to close the day at Rs.158.80/90 against its previous day’s closing levels of Rs.158.90/00 on the back of selling interest and export conversion. The total USD/LKR traded volume for 22June was $ 90.10 million.

Some of the forward USD/LKR rates that prevailed in the market were one month – 159.60/75; three months – 161.15/35; and six months – 163.55/75.