Weekly T. bill WAvgs unchanged for first time in the year

Thursday, 21 February 2013 00:54 -     - {{hitsCtrl.values.hits}}

The Weighted Averages (WAvg) at yesterday’s weekly Treasury bill auction remained unchanged for the first time in 11 weeks as total bids received dropped to a 15 week low as well, Wealth Trust Securities said.

The total accepted amount of Rs. 14.9 b at the auction was the lowest level since 19 December 2012, which was Rs. 6.1 b shorter than its initial offered amount of Rs. 21 b, while the 91 day, 182 day and 364 day bills recorded WAvgs of 9.10%, 10.08% and 11.10% respectively, it said.

Meanwhile, Wealth Trust said secondary market Treasury bond yields increased yesterday mainly on the liquid two five year maturities (i.e. 15 August 2018 and 1 April 2018) to an intraday high of 11.05% and 10.95% respectively.

However, yields dipped once again on these two maturities to close the day at levels of 10.92/94% and 10.98/11.02% respectively, subsequent to the announcement of the weekly auction results as market was expecting an increase in weighted averages.

Furthermore, it said a limited amount of activity was witnessed on the longer leg of the yield curve as well, with the nine year bond changing hands within the range of 11.90% to 12% yesterday. In addition a limited amount of activity was witnessed on secondary market bills mainly centring around 364 maturity within the range of 11.05%-11.08%.