Thursday, 29 August 2013 00:00
By Wealth Trust Securities
The weighted averages (WAvg) at the weekly Treasury bill auction held yesterday was steady with the 182 day bill WAvg dipping by 01 basis point (bp) for a second consecutive week to 9.64% while the WAvg on the 364 day bill increased for the first time in three weeks by 01 bp to 10.56%.
The 91 day bill was accepted after a lapse of one week at a WAvg of 8.61% as the total offered amount of Rs. 10 b was all but met due to the 364 day bill representing 63% of the total accepted amount, reflecting markets continued appetite for this duration. However in secondary bill markets, durations centering the 364 day bill were seen been traded within the range of 10.55% to 10.65% while March durations were within the range of 9.95% to 10.10%.
In secondary bond markets, activity continued to remain very high yesterday as yields increased across the yield curve with the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) hitting a eight month high of 120% against its day opening levels of 11.80/85. However buying interest towards the latter part of the day subsequent to the weekly auction result announcement saw its yields close the day marginally lower at levels 11.92/95 and 11.94/98 respectively.
In addition, considerable volumes on the two year maturity was seen changing hands within a range of 11.20% to 11.34% and closed the day at levels of 11.20/30 while the three and a half year maturity was at 11.35/45 subsequent to changing hands at levels of 11.40%.
Overnight call money and repo rates remained mostly unchanged yesterday to average 8.75% and 8.23% respectively as overnight liquidity stood at surplus of Rs. 2.62 billion. The Central Bank refrained from conducting any overnight or term Open Market Operations (OMO) for a third consecutive day, which saw Rs. 2.62 billion being deposited at the Central Bankâ€™s Repo window rate of 7.00%.