Treasury Bill weighted averages jump further

Thursday, 16 August 2012 01:09 - - {{hitsCtrl.values.hits}}

The weighted averages (WA) on the 182 day and 364 day maturities increased by four basis points and four basis points respectively at its weekly auction held yesterday, according to Wealth Trust Securities.

“However, surprisingly, the WA on the 91-day maturity decreased by one basis point to 11.36%. Once again a high proportion of 68.5% was accepted on the 182 day maturity from the total accepted amount, reflecting markets continued appetite for this duration,” the debt market specialist added.

In line with this, secondary market Treasury bond yields increased marginally, with the more liquid 20 month bond reflecting the most amount of activity as its yield increased by around six basis points to levels of 13.74%. In addition thin volumes of the four and five year maturity was seen being traded at levels of 14.18% and 14.28% respectively.

In money markets, Wealth Trust said surplus liquidity dropped below Rs. 10 billion yesterday, for the first time in three weeks, as overnight call money and repo rates remained mostly unchanged at averages of 10.50% and 9.55% respectively.

“An amount of Rs. 6.8 billion was mopped up from the system on an overnight basis at a weighted average of 9.43% by the Central Bank through its Open Market Operations (OMO),” Wealth Trust said.

It also said the rupee dipped marginally yesterday in morning trade to Rs. 132 on importer dollar demand but gained ground once again during the latter part of the day to close the day unchanged at levels of Rs. 131.94/131.98.