182-day Treasury bill weighted average increases for first time in 4 weeks

By Wealth Trust Securities

The downward trend in yields witnessed at the weekly Treasury bill auctions during the past three weeks reversed yesterday, with the 182 day bill increasing by seven basis points to 9.01%, and the weighted average yield of the 364 day remaining steady at 9.10%. 

The 91 day bill which was offered after a lapse of four weeks, recorded a weighted average yield of 8.71%. The total accepted amount was seen dipping to a 13-week low of Rs. 16.64 billion as the bids to offer ratio were seen hitting a six week low of 1.91:1.

In the secondary bond market, renewed selling interest saw yields increase across the board, with the liquid maturities of 01.03.21, 01.05.21, 01.09.23 and 01.08.26 increasing to intraday highs of 9.95%, 10.00%, 10.12% and 10.28% respectively against its previous day’s closing levels of 9.80/87, 9.84/90, 10.00/15 and 10.18/25. Furthermore, the 15.11.18 and 01.07.19 maturities were seen changing hands within the range of 9.15% to 9.25% and 9.40% to 9.50% respectively.

The total secondary market Treasury bond/bill transacted volumes for 26 September was Rs. 2.47 billion.

In money markets, the overnight call money and repo rates averaged 8.10% and 7.98% respectively as the net surplus liquidity in the system stood at Rs. 16.04 billion. The OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs. 12 billion on an overnight basis by way a repo auction at a weighted average of 7.25%. 

Rupee loses marginally

 In Forex markets, The USD/LKR rate on the spot rate was seen losing marginally to close the day at Rs. 153.02/12 against its previous day’s closing of Rs. 152.95/05 on the back of importer demand.

 The total USD/LKR traded volume for 26 September 2017 was $ 79.50 million.