Uptick on 364-day bill average for first time in 5 weeks

By Wealth Trust Securities

The 364 day bill weighted average was seen increasing for the first time in five weeks at its weekly Treasury bill auction held on Tuesday, recording an increase of two basis points to 9.39%. 

Interestingly, the total accepted amount was seen falling short of the total offered amount for the first time in seven weeks, with Rs. 10.13 billion been accepted only on the 364 day maturity against Rs. 14 billion in total offered on all three maturities. 

All bids received for the 91 day and 182 day bill were rejected while the total bids received to total amount offered ratio decreased to a 20-week low of 1.79:1. 

In the secondary bond market, the maturities of 15.12.21, 15.03.23, 01.08.25, 01.06.26 and 15.06.27 were traded at levels of 10.08%, 10.40% to 10.45%, 10.62% to 10.66%, 10.60% and 10.68% respectively on the back of moderate activity.

The total volume of bonds transacted in the secondary market on the 25 June was Rs.4.05 billion.

In money markets, the overnight call money and repo rates averaged 8.48% and 8.44% respectively as the OMO Department of the Central Bank of Sri Lanka infused an amount of Rs. 6.00 billion at a weighted average yield of 8.50%, by way of an overnight reverse repo auction. The net liquidity in the system stood at a deficit of Rs.2.71 billion yesterday.

 Appreciating trend in rupee continues 

The USD/LKR rate on spot contracts appreciated further on the back of selling interest to close the day at Rs.158.35/50 against its previous day’s closing of Rs.158.80/90.

The total USD/LKR traded volume for 22 June was $ 123.10 million.Given are some forward USD/LKR rates that prevailed in the market: one month – 159.10/30; three months – 160.75/05; six months – 163.10/40.