Offered amount at weekly T Bill auction hits 28-month low
Wednesday, 21 August 2013 00:07
The total offered amount at today’s (Wednesdays) weekly Treasury bill auction will be at a twenty eight month low of Rs. 6 billion with Rs. 0.5 billion on the 91-day, Rs. 1 billion on the 182-day and Rs. 4.5 billion on the 364-day maturities respectively, Wealth Trust Securities said.
At last week’s auction the weighted averages (WAvg) on both the 91-day and 364-day bills resumed its downward trend to reflect dips of 2 basis points (bp) and 1 bp respectively to 8.61% and 10.56%, while the WAvg on the 182-day bill remained unchanged at 9.66%.
In secondary bill markets, the 364-day bill was seen being quoted at levels of 10.50%-10.53%, while durations centering on the 182-day bill were at levels of 9.60% to 9.75%.
On Monday, activity in secondary bond markets picked up as yields were seen edging up marginally. The increase in yields was mainly attributed to trades taking place on a three and a half year maturity (01 January 2017) at levels above the liquid two five-year durations (i.e. 01 April 2018 and 15 August 2018), reflecting a kink on the yield curve.
The 3.5-year maturity was seen changing hands within the range of 11.35% to 11.41% and in turn edged up the liquid two five-years maturities to levels of 11.35/38 and 11.40/44 respectively. In addition, yields on the two and three-year durations edged up as well to levels of 10.70/80 and 10.95/00 respectively.
The overnight call money and repo rates remained steady to average 8.69% and 8.07% respectively, as surplus liquidity dipped marginally to Rs. 4.17 billion yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 2 billion on an overnight basis by way of a Repo auction at a WAvg of 7.44%, while a further Rs. 0.20 billion was mopped up for a period of seven days at a WAvg of 7.92% as well. In addition, a further amount of Rs. 1.97 billion was seen being deposited at CBSL’s Repo window of 7.00%.