364 day bill WAvg remains steady for a fourth consecutive week
Wednesday, 5 November 2014 00:00
Secondary market bond yields move up marginally
By Wealth Trust Securities
The Weighted Average (WAvg) on the 364 day bill remained stagnant at 6% for a fourth consecutive week at its weekly Treasury bill auction conducted yesterday while the 182-day bill offered after a lapse of two weeks fetched a WAvg of 5.84%. The total accepted amount exceeded the total offered amount of Rs. 12 billion by Rs. 10.16 billion with the 364 day bill representing only 52% of this amount.
Meanwhile in secondary bond markets, the dip in yields witnessed during morning hours of trading was seen reversing once again following the outcome of the weekly auction. Activity was seen centring on the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) from daily lows of 6.93% and 6.98% respectively to highs of 6.96% and 7.03%, the 1 July 2019 within 7.20% to 7.25%, the 1 July 2022 within 7.68% to 7.75% and the 1 January 2024 within 7.85% to 7.90%.
In money markets, Overnight call money and repo rates remained steady to average 6% and 5.45% respectively as surplus liquidity stood at Rs. 29.60 b yesterday. The Open Market Operations (OMO) department of Central Bank drained out an amount of Rs. 4.60 b by way of a three day repo auction at a WAvg of 5.81%.
Rupee dips marginally once again
The USD/LKR rate on spot next contracts depreciated marginally yesterday on the back of importer demand to close the day at levels of Rs. 131.00/05 as spot contracts remained inactive. The total USD/LKR traded volume for 3 November was at $ 53.50 million.
Some of the forward dollar rates that prevailed in the market were: one month â€“ 131.38; three months â€“ 132.25; and six months â€“ 133.35.