Thursday, 22 January 2015 00:08
The upward trend in primary yields continued as weighted averages (WAvg’s) at yesterday’s weekly bill auction increased by 01 basis point across the board. The WAvg on the 364 day bill was seen increasing to a sixteen (16) week high of 6.05% while the 91 day and 182 day bill fetched WAvg’s of 5.80% and 5.90% respectively.
Interestingly, the representation of the accepted amount on the 364-day bill against the total accepted amount was seen dipping to a seventeen (17) week low of 29% as most market participants were seen demanding the shorter two durations.
Activity in secondary bond markets was seen increasing yesterday as yields were seen increasing in morning hours of trading mainly on the liquid maturities of the two 2018’s (01.04.2018 & 15.08.2018), the 01.07.2019 and the 01.07.2022 to intraday highs of 7.30%, 7.40%, 7.45% and 7.96% respectively. However, subsequent to the release of the auction results yields were seen dipping marginally once again to close the day mostly unchanged against its previous day’s closing levels with the 01.07.2019 and the 01.07.2022 hitting intraday lows of 7.35% and 7.88%. In secondary bill markets, the 364-day bill was quoted at levels of 6.00% to 6.10% post auction.
Meanwhile in money markets, overnight call money and repo rates averaged 5.80% and 5.20% respectively as surplus liquidity increased to Rs. 70.85 billion yesterday. The Open Market Operations (OMO) department of Central Bank was seen draining out an amount of Rs. 57.92 billion by way of a two-day repo auction at a weighted average of 5.86%.
Rupee continues to slide
The rupee closed the day marginally lower at Rs. 132.85/00 yesterday in comparison to its previous day’s closing levels of Rs. 130.85/90 as continued importer demand was witnessed according to market sources. The total USD/LKR traded volume for 20 January 2015 was $ 79.83 million.
Some of the forward USD/LKR rates that prevailed in the market were one month - 133.40; three months - 134.50 and six months - 135.60.