Drop in WAvgs for 10th consecutive week inspires secondary bond markets

Thursday, 28 November 2013 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Activity in secondary bond markets picked up yesterday as weighted averages (WAvgs) at the weekly Treasury bill auction declined for a 10th consecutive week. The WAvgs on the market favorite 364 day bill decreased the most by six basis points to 9.69% while the WAvgs on the 91 day and 182 day bills decreased by four and five basis points respectively to 8.06% and 8.80%. The 364 day maturity continued to dominate the auction as it represented 75% of the total accepted amount of Rs. 19.6 b, which was Rs. 8.6 b higher than the initial total offered amount of Rs. 11 b. The most liquid durations of two-years (15 July 2015), two-and-a-half years (1 April 2016), three-and-a-quarter years (1 January 2017) and five years (i.e. 1 April 2018 and 15 August 2018) saw its yields decline to daily lows of 10.00%, 10.35%, 10.75%, 11.08% and 11.20% respectively in comparison to its previous day’s closing levels of 10.03/08, 10.42/44, 10.80/83, 11.11/14 and 11.22/25 as activity increased. Meanwhile in secondary bill markets, continued demand post and pre auction saw January 2014 maturities changing hands within the range of 8.10% to 8.25%, February 2014 within 8.15% to 8.30%, May 2014 within 8.60% to 8.75%, August 2014 within 9.20% to 9.35%, October 2014 within 9.50% to 9.55% and the latest 364 day bill within 9.60% to 9.65%. In money markets, the overnight call money and repo rates remained steady to average 7.78% and 7.05% respectively as surplus liquidity stood at Rs. 10.08 b yesterday. The Open Market Operations (OMO) department of Central Bank was seen mopping up liquidity on a seven day basis for an amount of Rs. 3.80 billion at a weighted average of 7.44% while a further Rs. 6.68 b was deposited at its widow rate of 6.50%. Rupee holds steady In Forex markets, the rupee on spot contracts closed the day steady yesterday at Rs. 131.15/20 while the rate on spot next contracts was seen appreciating to a daily high of Rs 131.30 against its low of Rs. 131.40 and its previous day’s closing of Rs. 131.40/45. The total USD/LKR traded volume for the previous day (26 November 2013) stood at US$ 57.45 million. Some of the forward dollar rates that prevailed in the market were one month – 132.08; three months – 133.70; and six months -136.05.

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.