364-day bill average dips for the first time in 13 weeks

Thursday, 14 July 2016 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Reversing an upward or stagnant trend, the 364-day bill weighted average was seen decreasing for the first time in 13 weeks yesterday while all bids received for the 91-day and 182-day bills were rejected. The dip was 7 basis points to 10.49% as an amount of Rs. 7.49 billion was accepted against an offered amount of Rs. 6 billion.

In the secondary bond market, activity continued to remain high mainly on the 01.09.23, 01.01.24 and 01.06.26 maturities within daily lows of 12.00%, 12.05% and 12.18% respectively to highs of 12.03%, 12.10% and 12.26%.

In addition, the yield on the 15.09.19 maturity was seen dipping to an intraday low of 11.42% against an opening high of 11.50% while 2018 maturities continued to change hands at levels of 11.05% to 11.10%.

This was ahead of today’s Treasury bond auctions where a total amount of Rs. 23 billion will be on offer consisting of Rs. 9 billion on a 2.03-year maturity of 15.10.2018, Rs. 8 billion on a 4.08-year maturity of 01.03.2021 and Rs. 6 billion on a 9.01 year maturity of 01.08.2025.

Meanwhile, in money markets yesterday, the call money and repo rates remained steady to average at 8.21% and 8.02% respectively as the OMO Department of the Central Bank was seen injecting an amount of Rs. 46.49 billion on an overnight basis by way of a reverse repo auction at a weighted average rate of 7.97%. The net liquidity shortfall was seen decreasing to Rs. 42.27 billion against Rs. 51.51 recorded the previous day.

Rupee appreciates marginally

In Forex markets yesterday, the USD/LKR rate on the active one week forward contract was seen appreciating marginally to close the day at Rs. 146.10/25 against its previous day’s closing levels of 146.25/40. The total USD/LKR traded volume for 12 July 2016 was $ 58.60 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 146.70/00; three months - 148.30/50 and six months - 150.70/90.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.