Weekly T-bill weighted averages dip for the first time in four weeks

By Wealth Trust Securities

The weekly weighted averages at yesterday’s Treasury bill auction declined for the first time in four weeks, reversing an upward trend witnessed over the previous three weeks. 

The weighted averages on the 182 day bill and the 364 day bill decreased by 07 and 09 basis points respectively to 9.23% and 9.58%. The exact offered amount of Rs.18.00 billion was accepted at the auction as the bid to offer ratio increased to 3.55: 1. 

The sentiment in the secondary bond market remained bearish yesterday as activity came to a complete standstill. The yields on two way quotes were seen increasing and widening as well.

The total secondary market Treasury bond/bill transacted volumes for 4 September was Rs.0.55 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged at 8.10% and 8.12% respectively as the net surplus liquidity in the system stood at Rs. 27.33 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 14.07 billion on an overnight basis at a weighted average of 7.27%. 

Rupee dips 

In Forex markets, the spot rate was seen deprecating yesterday to close the day at Rs.152.60/70 against the previous day’s closing levels of Rs.152.42/50 on the back of importer dollar demand.

The total USD/LKR traded volume for 4 August was $ 48 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month – 153.25/35; three months – 155.05/15; six months – 157.50/60.