Weekly averages increase for a second consecutive week

• Secondary market activity remains dull
• All bids received for the 91 day bill were rejected

By Wealth Trust Securities

The upward trend in primary market rates was seen continuing at yesterday’s weekly Treasury bill auction for a second consecutive week. 

The 364 day bill recorded an increase of 11 basis points to 9.65% followed by the 182 day bill by 10 basis points to 9.27%. All bids received for the 91 day bill were rejected. Interestingly, the total offered amount of Rs.20 billion was fully met as its bid to offer ratio improved to 2.45:1. 

Activity in the secondary bond market remained dull yesterday with the maturities of 01.03.21, 01.08.21 and 15.50.23 changing hands at levels of 10.45%, 10.50% to 10.55% and 10.75% to 10.79% respectively.

The total secondary market Treasury bond/bill transacted volume for 22 August was Rs. 3.76 billion.

In money markets, the overnight call money and repo rates averaged at 8.43% and 8.32% respectively as the net surplus liquidity in the system remained high at Rs. 20.72 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 10.71 billion on an overnight basis at a weighted average of 7.27%.  

Appreciating trend in rupee continue

The USD/LKR rate on spot contracts appreciated for a third consecutive day to close at Rs. 152.85/90 against its previous day’s closing of Rs. 153.00/05 on the back of continued export conversions outweighing importer demand.

The total USD/LKR traded volume for 22 August was $ 34.70 million.

Some of the forward USD/LKR rates that prevailed in the market were: one month – 153.75/85; three months – 155.65/75; and six months – 158.45/60.