364 day bill average continues upward trend

Wednesday, 28 February 2018 00:00 -     - {{hitsCtrl.values.hits}}


  • 91 day and 182 day bills rejected

By Wealth Trust Securities 

In a surprise move, the Central Bank of Sri Lanka was seen rejecting all bids for the 91 day and 182 day bills and accepting the total offered amount of Rs. 30 billion only on the 364 day bill, at its auctions conducted yesterday. 

The 91 day bill was rejected subsequent to it being offered for the first time since 23 August 2017 while the 182 day bill was rejected for the first time over the past 50 weeks. The accepted amount of Rs. 30 billion on the 364 day bill was its highest amount since 26 June 2013. The bid to offer ratio increased to a four-week high of 2.63:1.

Activity in the secondary bond market continued to remain very moderate yesterday. A limited amount of trades were witnessed on the 01.03.21 and 01.08.21 maturities at levels of 9.85% to 9.95% and 9.85% respectively. 

In the secondary bill market, April and November 2018 maturities traded at levels of 8.53% to 8.60% and 9.00% respectively while January and February 2019 maturities changed hands at levels of 9.20% and 9.35% to 9.40% respectively, pre-auction.

The total secondary market Treasury bond/bill transacted volumes for 26 February 2018 was Rs. 4.16 billion.

In money markets, the Open Market Operations Department of the Central Bank of Sri Lanka drained out an amount of Rs. 27.1 billion by way of two Repo auctions at weighted average rates of 7.25% and 7.35% respectively for periods of overnight and seven days as the net liquidity surplus in the system stood at a high of Rs. 40.86 billion yesterday.

Furthermore, it drained out an amount of Rs. 1.50 billion by way of two term repo auctions at weighted average yields of 7.43% and 7.48% respectively for the periods of 12 days and 19 days, valued today. The overnight call money and repo rates averaged 8.12% and 7.53% respectively.

Rupee appreciates marginally 

The USD/LKR rate on spot contracts was seen appreciating marginally yesterday to close the day at Rs. 154.88/92 against its previous day’s closing of Rs. 154.90/95 on exporter dollar conversions.

The total USD/LKR traded volume for 26 February 2018 was $ 90.44 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 155.70/85; three months - 157.45/60 and six months - 159.95/05.