Mixed outcome at weekly bill auction

Thursday, 5 February 2015 00:00 -     - {{hitsCtrl.values.hits}}

Total accepted amount down to 6-week low   The total accepted amount at Monday’s weekly Treasury bill auction held early due to a shortened trading week was down to a six week low of Rs. 9.8 billion against its total offered amount of Rs. 12 billion. The weighted average (WAvg) on the 91 day bill was seen increasing by two basis points to 5.82% while WAvgs on the 182 day and 364 day bills remained steady at 5.90% and 6.05% respectively. In secondary bond markets, yields were seen increasing in morning hours of trading mainly on the 15 May 2017, the two 2018s (1 April 2018 and 15 August 2018), the 1 May 2021 and the 1 July 2022 maturities to intraday highs of 7.00%, 7.15%, 7.19%, 7.55% and 7.68% respectively against its previous trading day closing levels of 6.90/00, 7.07/12, 7.13/18, 7.50/58 and 7.63/66. However, subsequent to the release of the auction results, the upward trend in yields was seen taking a pause as activity dried up considerably. In addition, a limited amount of activity was witnessed on the 1 January 2024 maturity within the range of 8.10% to 8.13% as well. In secondary bill markets, November 2015 bills were quoted at levels of 5.96/00 post auction. In money markets, overnight call money and repo rates increased marginally on Monday to average 5.97% and 5.64% respectively as surplus liquidity decreased to Rs.23.17 billion. The Open Market Operations (OMO) department refrained from conducting any auction yesterday.   Two-way quotes narrow in rupee markets The USD/LKR rate on spot next contracts were seen actively quoted on Monday within a narrow range of Rs. 132.80/10 in comparison to its previous days quotes of Rs. 133.00 to 133.50. The total USD/LKR traded volume for 30 January was $ 32.50 million. Some of the forward USD/LKR rates that prevailed in the market were one month – 133.65; three months – 134.40; and six months – 135.90.