Weekly averages continue to edge up on lower volumes

By Wealth Trust Securities

The upward trend in weighted averages at the weekly Treasury bill auction continued for a third  consecutive week with the total accepted amount falling short of the total offered amount for a 12th consecutive week as well at its auction held yesterday. 

The weighted averages on the 91 day and 182 day maturities increased by 05 basis points each to 8.65% and 9.61% respectively while the weighted average on the 364 day increased by 03 basis points to 10.14%. Only an amount of Rs. 7.6 billion was accepted at the auction against its total offered amount of Rs. 29.5 billion as the total bids to offer ratio was seen dipping further to 1:1.5.

Meanwhile, activities in the secondary bond market moderated yesterday as yields were seen decreasing marginally on the back of fresh buying interest. The liquid maturities of 15.09.19, 01.09.23, 01.08.24 and the two 2026 maturities (i.e. 01.06.26 and 01.08.26) were seen hitting lows of 11.75%, 12.44%, 12.50%, 12.55% and 12.56% respectively against their previous day’s closing levels of 11.80/05, 12.40/60, 12.50/60 and 12.55/70 each. 

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.42% and 8.56% respectively as liquidity was seen reversing to a surplus once again to record Rs. 3.8 billion. 

 Rupee dips further

The rupee rate on the active one week forward contract was seen depreciating further yesterday to close the day at Rs. 150.70/80 against its previous day’s closing levels of Rs. 150.25/45 on the back of continued importer demand. The total USD/LKR traded volume for 20 November 2016 was $ 86.02 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 151.25/35; three months - 152.85/95 and six months - 155.10/20.