Activity dries up ahead of weekly Treasury Bill auction

By Wealth Trust Securities

Secondary market bond trading activities dried up, as yields remained steady during the day, with active two way quotes seen only on the 5 year, and 6 year maturities at levels of 12.45% - 12.55% and 12.95% - 13.00% respectively.

Meanwhile, the Central bank reduced the total amount to be offered at the weekly Treasury bill auction to Rs.15 billion. The 91 day maturity will consist of Rs.3 billion, the 182 day and the 364 day Rs. 6 billion each.

At last week’s auction, weighted averages on all three maturities increased to 10.79%, 12.09% & 12.85%.

The overnight call money and repo rates remained mostly unchanged, as Rs. 3.5 billion was injected on an overnight basis at a weighted average of 9.73%, through Open Market Operations (OMO). Market liquidity remained at a net short of Rs. 4.24 billion with Rs 0.94 billion being accessed through the reverse repo window at a rate of 9.75% and  Rs 0.19 billion being deposited through the repo window at a rate of 7.75%.

The rupee appreciated by Rs.1.20  to close at a two month high of Rs 128.20, backed by improved dollar inflows. The total dollar/rupee volume for the day was US $ 51.25 million.