Weekly primary market WAvg dips for fourth consecutive week

Thursday, 1 August 2013 02:19 -     - {{hitsCtrl.values.hits}}

The weighted average (WAvg) on the 364 day bill dipped for a fourth consecutive week to 10.52% at its weekly Treasury bill auction conducted yesterday, reflecting a four basis point (bp) drop. Interestingly, the amount accepted was twice as much as the offered amount of Rs. 12 b while the 91 day and 182 day bills were not offered. In secondary bill markets, considerable volumes on the 364 day bill was seen changing hands within the range of 10.50%-10.52% subsequent to the auction results while maturities centering the 182 day bill were seen changing hands within the range of 9.75%-9.95% as well. Meanwhile, in secondary bond markets activity dried up yesterday even as inflation for the month of July decelerated to a 15 month low of 6.10% on its point to point while the annualised average dipped as well to a six month low of 8.30%. A limited amount of activity was witnessed on the liquid two five year maturities (i.e. 1 April 2018 and 15 August 2018) as it was seen closing the day marginally higher at levels of 11.23/26 and 11.30/32 while the three year was seen quoted at levels of 10.85/95. Liquidity in money markets dipped once again marginally to Rs. 2.18 b while overnight call money and repo rates remained steady to average 8.80% and 8.39% respectively yesterday. An amount of Rs. 7.3 b was seen been deposited at CBSL’s repo window rate of 7.00% while an amount of Rs. 5.12 b was accessed from its discount window of 9.00%. Furthermore, the Open Market Operations (OMO) department of Central Bank was seen successfully injecting an amount of Rs. 8 b for a period of 15 days at a WAvg of 8.2459% by way of a term reverse repo auction, value dated today.