Yields on selected maturities increase ahead of weekly bill auction

By Wealth Trust Securities

The yields for selected secondary market bond maturities were seen increasing yesterday in thin trade ahead of today’s weekly Treasury bill auction. Selling interest on the 2019 and 2021 maturities saw its yields increase to daily highs of 8.72% and 9.10% respectively while two way quotes on other maturities remained broadly steady.

This was ahead of today’s weekly Treasury bill auction, at where a total amount of Rs.20 billion will be on offer consisting of Rs.2 billion on the 91 day, Rs.8 billion on the 182 day Rs.10 billion on the 364 day maturities. At last week’s auction, weighted averages dipped across the board to 6.06%, 6.30% and 6.86% respectively.

In money markets, the surplus liquidity in the system decreased further to Rs.101.31 billion with an amount of Rs.8.62 billion been drained out at a weighted average of 6.08% for a period of seven days by the OMO department (Open Market Operations) of Central Bank by way of a term Repo auction once again. The overnight call money and repo rates remained steady to average 6.31% and 5.92% respectively. 

Rupee appreciates marginally

 The USD/LKR rate on spot contracts appreciated marginally yesterday for the first time in five days to close date at Rs.143.15/25 against its previous day’s closing level of Rs.143.25/35 on back of inward remittances outpacing importer demand. The total USD/LKR traded volume for 7 December was US $ 117.36 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month – 143.65/75; three months – 144.45/60; and six months – 145.60/70.