Primary market W.Avgs continue free-fall to hit 10-week low

Thursday, 7 May 2015 00:00 -     - {{hitsCtrl.values.hits}}

  • Over Rs. 30 b accepted at auction

By Wealth Trust Securities The downward trend in weighted averages (W.Avgs) at primary auctions continued at yesterday’s weekly Treasury Bill auction as well, with the W.Avgs on all three maturities decreasing to a 10-week low. The 182 day bill recorded the sharpest decrease of six basis points (bp) to 6.26% closely followed by the 364 day bill by 04 bp to 6.35% and the 91 day bill by three bp to 6.12%. Considerable demand saw the total accepted amount exceed the total offered amount of Rs. 25 billion by Rs. 7.2 billion. Activity in secondary bond markets picked up yesterday, as yields were seen dipping following the outcome of the weekly auction. The yields on the liquid maturities of 1 June 2018, 1 July 2022 and 1 September 2023 was seen dipping to intraday lows of 7.93%, 8.56% and 8.74% respectively against its days opening highs of 7.98%, 8.60% and 8.77%. Furthermore in secondary bill markets, August and November 2015 bills were seen changing hands at levels of 6.05% and 6.20%, post auction. Meanwhile in money markets, overnight call money and repo rates increased marginally to average 6.12% and 6.02% respectively despite net surplus liquidity increasing marginally to Rs. 127.96 billion yesterday. Rupee rate on spot contracts dips marginally The dollar/rupee rate on spot contracts was seen dipping to Rs. 133.30 yesterday against its previously held rate of Rs. 133. However its one week to one month forward contracts remained steady at Rs. 133.60/70 and Rs. 134.90/00 respectively. The total USD/LKR traded volume for 5 May was at $ 18.50 million. Given are some forward dollar rates that prevailed in the market: three months - 135.95; six months – 137.67.