Weekly weighted averages resume downward trend

Thursday, 30 January 2014 00:00 -     - {{hitsCtrl.values.hits}}

By Wealth Trust Securities After a lapse of one week, weighted averages (WAvgs) at the weekly Treasury bill auction resumed its downward trend with the 91 day and 182 day maturities dipping by two basis points (bp) each to 6.82% and 7% respectively while the 364 day dipped by one bp to 7.14%. The total accepted amount at the auction was Rs. 12.8 billion higher than the initial total offered amount of Rs. 15 b with the 182 day bill comprising of 44.6% of this amount, reflecting a shift in markets appetite to this duration against the previously preferred 364 day maturity. Meanwhile in secondary bond markets, yields closed the day mostly unchanged in moderate trading yesterday, mainly on the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) subsequent to changing hands within daily lows of 9.00% and 9.08% respectively to a high of 9.10% to 9.13%. In addition, a limited amount of activity was witnessed on the 1 April 2016 maturity within the range of 8.10% to 8.25%, 1 January 2017 within the range of 8.40% to 8.45% and the 15 January 2019 at 9.30%. In secondary bill markets, the 91 day, 182 day and 364 day maturities were seen quoted at levels of 6.75/85, 6.95/00 and 7.05/14 respectively pro-auction. Meanwhile in money markets, the total surplus volume of Rs. 36.95 billion was deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50% as Central bank refrained from conducting any auction under its Open Market Operations (OMO) yesterday. Overnight call money and repo rates remained steady to average 7.36% and 6.73% respectively.   Rupee appreciates marginally The USD/LKR rate appreciated to close the day at Rs. 130.70/75 on the back of export dollar conversion yesterday. The total USD/LKR traded volume for the previous day (28 January 2014) stood at US$ 49.34 million. Some of the forward dollar rates that prevailed in the market were: one month – 131.03; three months – 131.73; and six months – 132.98.