Debt market demand succeeds in absorbing over Rs. 14 b for first time in six weeks

By Wealth Trust Securities

The weighted averages (WAvg) on the 182-day and 364-day bills dipped for the first time in nine weeks yesterday, while the 91-day bill Wavg dipped for a second consecutive week at its weekly auction held yesterday.

The dip of one basis point on all three maturities succeeded in authorities accepting over Rs. 14 b in total for the first time in six weeks against its initial total offered amount of Rs. 8 b.

The ratio of the total accepted amount to the total bids received amount hit a six week high of 58% as well, with the 364-day bill continuing its dominance at the auction as it represented 90% of the total accepted amount.

Maturity             Bids received               Amount accepted      Weighted Average

91   days           Rs   2.477 Billion              Rs    1.000 Billion                9.24%

182 days           Rs   1.625 Billion             Rs   0.340 Billion               10.24%          

364 days           Rs 20.143 Billion              Rs 12.683 Billion               11.34%

 

In secondary bond markets, yields remained steady for a second consecutive day with a limited amount of activity witnessed on the four-year maturity at levels of 11.20% to 11.23% while yields on the liquid two five-year maturities closed the day at levels of 11.40/44. In secondary bill markets the 364-day bill was seen been quoted at levels of 11.30/34 subsequent to the auction.

Given are the closing, secondary market yields for the most frequently traded maturities.

Treasury Bills                                                                        Treasury Bonds

 

  91 Day Bills -              9.24 / 9.40                                01/04/14        -           11.20 / 11.30

182 Day Bills -           10.24 / 10.40                              15/07/15        -           11.15 / 11.30

364 Day Bills -           11.30 / 11.34                              01/04/16        -           11.25 / 11.35

                                                                                             15/07/17        -           11.23 / 11.28

                                                                                             01 /04/18       -           11.40 / 11.44

                                                                                             15/08/18        -           11.40 / 11.44

                                                                                             01/11/19        -           11.47 / 11.60

             01/05/21        -           11.65 / 11.80

                                                                                             01/01/22        -           11.75 / 11.90

             01/07/28        -           12.25 / 12.35

             01/10/32        -          12.32 / 12.40

 

 Meanwhile in money markets, the Open Market Operations (OMO) department of the Central Bank drained out an amount of Rs. 22.20 b at a weighted average of 8.35% by way of an overnight Repo auction yesterday as surplus liquidity in money markets increased to Rs. 25.75 billion. Overnight call money and repo rates remained steady to average 9.48% and 8.58% respectively.

Rupee loses ground marginally (sub head)

In Forex markets, the rupee lost ground marginally yesterday to close the day at Rs. 125.55/125.60 in comparison to its previous day’s closing levels of Rs. 125.35/125.40 on the back of demand for forward dollar contracts.

The total USD/LKR traded volume for the previous day (16 April 2013) stood at US$ 69.60 million. Given are some forward dollar rates that prevailed in the market: One month – 126.70; three months – 128.68; and six months – 131.60.