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Thursday, 19 May 2016 00:27 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weighted average on the 364 day bill was seen increasing to a seven week high of 10.48% at its weekly Treasury bill auction 
conducted yesterday, recording an increase of 11 basis points against its previous week’s average.
Furthermore the 91 day bill which was accepted after a lap of one week, increased by 14 basis points to 8.66% while all bids received for the 182 day bill were rejected. The total accepted amount at the auction fell below the total offered amount of Rs.30 billion by Rs.11.72 billion.
In the secondary bond market, bond yields were seen closing the day broadly steady despite the increase in weighted averages, except for the 01.05.2020 maturity, which saw its yield dip to an intraday low of 11.90% against its opening high of 12.00%. In addition, the 15.11.2018 maturity was seen changing hands within the range of 11.58% to 11.62% as well. In secondary market bills, durations centering the 182 day bill were seen changing hands within the range of 9.70% to 9.80%.
Meanwhile today’s bond auctions will have on offer Rs.10 billion each on a 2.05 year maturity of 15th November 2018 and a 3.11 year maturity of 1st May 2020 while a further Rs.12.5 billion each will be offered on a 7.07 year maturity of 01.01.2024 and a 10 year maturity of 01.06.2026. The previous auctions of these exact maturities recorded weighted averages of 11.51%, 11.75%, 12.07% and 13.93% respectively.
In money markets yesterday, the overnight call money and repo rates remained mostly unchanged to average 8.15% and 8.01% respectively as market liquidity remained at a net surplus of Rs.5.14 billion.
Rupee remains broadly steady
The USD/LKR rate on the active spot next contract remained mostly unchanged to close the day at Rs.Rs.146.70/95 as markets continued to be at equilibrium. The total USD/LKR traded volume for the 17thof May 2016 was US $ 46.80 million.
Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 147.50/75; 3 Months - 149.00/30 and 6 Months - 151.40/60.
