Weekly T bill weighted averages decrease further

By Wealth Trust Securities

The weekly Treasury bill weighted averages on the 91 day and 364 day maturities were seen continuing its declining trend to record drops of 03 and 02 basis points respectively to 8.00% and 8.97%. The total offered amount was fully subscribed at the auction as the bid to offer ratio stood at 2.80:1.

In the secondary bond market, yields on the more liquid maturities of 01.05.20, 01.03.21 and 15.07.23 were seen trading steady at levels of 9.25% to 9.30%, 9.50% and 9.95% respectively while yields on the lesser liquid maturities of the three 2023s (i.e. 15.03.23, 15.05.23 and 01.09.23) and 01.01.24 were seen increasing to levels of 9.98% to 10.05% and 10.10% respectively. In addition, on the very short end of the curve, 15.10.18 and 15.09.19 were seen changing hands at levels of 7.92% to 7.93% and 8.97% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 4 September was Rs.7.22 billion.

In the money market, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 3.4 billion on an overnight basis at a weighted average of 7.86% as the net surplus liquidity increased once again to Rs. 18.93 billion yesterday subsequent to dipping to an one and a half month low of Rs. 4.98 billion the day before. The overnight call money and repo rates averaged at 7.96% and 8.02% respectively. 

Rupee continues to hits new lows

 The USD/LKR rate on spot contracts was seen hitting a new low of Rs. 162.20 yesterday before closing at Rs. 162.15/30 against its previous day’s closing levels Rs. 161.95/00 on the back of continued importer demand.

The total USD/LKR traded volume for 4 September was $ 20.25 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 163.00/10; three months – 164.50/70; six months – 166.95/15.