Weekly weighted averages dip marginally

By Wealth Trust Securities

The weekly weighted averages were seen declining marginally yesterday, reversing an upward trend witnessed over the previous two weeks. 

The 364-day and 91-day bill averages dipped by two and one basis points respectively to 9.03% and 10.73% while the average on the 182-day remained steady at 9.94% for a third consecutive week. The 364-day bill continued to dominate the auction as it represented 71.51% of the total accepted amount of Rs. 26.92 billion. 

Furthermore, inflation on its point to point average was seen declining for a second consecutive month to record 4.30% for August while its annualised average increased for a seventh consecutive month to 3.10%. 

In the secondary bond market, continued buying interest saw yields dip yesterday across the board. The yields on the liquid maturities of 01.03.21, 01.10.22, 01.08.24, 15.03.25 and 01.08.26 were seen declining to intraday lows of 11.66%, 11.89%, 12.08%, 12.22% and 12.27% respectively against its day’s opening highs of 11.71%, 11.95%, 12.12%, 12.25% and 12.33%. In addition, 2018 maturities were seen changing hands within the range of 11.00%-11.05% as well. 

Meanwhile, the net surplus liquidity in the system continued to increase to record over a two-month high of Rs. 20.63 billion yesterday as no overnight reverse repo auctions by the Open Market Operations (OMO) department of the Central Bank were conducted for the first time since 30 June 2016. Call money and repo rates remained steady to average 8.40% and 8.52% respectively.

Rupee dips marginally 

In Forex markets, the spot next rate was seen dipping marginally to close the day at Rs. 145.65/70 yesterday against its previous day’s closing of Rs. 145.60/65 on the back of importer demand. The total USD/LKR traded volume for 30 August 2016 was $ 33.80 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 146.50/60; three   months - 148.15/30 and six months - 150.55/70.