6-month Treasury Bill WAY tops 13% level, first time in 38 months

The Weighted Average Yield on the 182-day (six-month) Treasury Bill hurdled above 13% for the first time in 38 months to 13.02% yesterday, reflecting a weekly increase of seven basis points (bp) in comparison to its previous weeks weighted average, Wealth Trust Securities said.

It said the 364-day maturity edged up by four bp as well to 13.27% while the 91-day maturity remained steady at 11. 36%. Furthermore, interestingly, for the first time in five weeks, the total accepted amount of Rs. 12.7 billion was less than the total offered amount of Rs. 13 billion.

In secondary market, debt market specialist Wealth Trust said the bond trading activity dried up yesterday as yields remained steady during the day with a small volume of 5 year bonds been traded at levels of 14.32%. Furthermore a limited amount of activity was witnessed on four month Treasury bills at levels of 12.15%.



In money markets, Wealth Trust said surplus liquidity increased to Rs. 4.1 billion yesterday against its previous day’s volume of Rs. 1.9 billion as overnight call money and repo rates remained steady at weighted averages of 10.55% and 9.57% respectively.

“An amount of Rs. 2.6 billion was mopped up from the system on an overnight basis at a weighted average of 9.430%, by the Central Bank through its Open Market Operations (OMO),” Wealth Trust said.

The rupee meanwhile continued to remain mostly unchanged at Rs. 132.30 yesterday for a third consecutive day amidst heavy demand for contracts value cash (22/8/12).

Volumes traded were considerably high as forward dollar premiums continued to remain high as well. Some forward dollar rates that prevailed in the market include one month – 133.63; three months – 136.11; and six months – 139.61.