364 day bill average increases for a second consecutive week

By Wealth Trust Securities

The upward momentum in the weekly Treasury bill weighted average yields continued for a second consecutive week as the 364 day maturity was seen increasing by 04 basis points to 9.43%. This was closely followed by the 91 day bill as it was seen increasing by 03 basis points to 8.35%. The weighted average on the 182 day bill remained steady at 8.85%. The total accepted amount was seen falling short of the total offered amount for a second consecutive week, with Rs. 11.02 billion been accepted against a total offered amount of Rs. 15 billion. 

However, the secondary bond market remained inactive with limited amount of trades seen on the 15.01.19, 01.07.19, 15.03.23 and 01.09.28 maturities at levels of 9.10%, 9.55% to 9.65%, 10.40% to 10.47% and 10.76% respectively. In the secondary bill market, January, March and June 2019 maturities changed hands at levels of 9.00%, 9.30% and 9.45% respectively.

The total volume of bonds transacted in the secondary market on 03rd July 2018 was Rs. 4.19 billion.

In money markets, the overnight call money and repo rates averaged at 8.49% and 8.46% respectively as the OMO department of Sri Lanka was seen injecting an amount of Rs. 30.26 billion on an overnight basis by way of a Reverse repo auction at a weighted average of 8.41%. 

Furthermore the OMO (Open Market Operations) Department of Central Bank injected an amount of Rs. 2.64 billion by way of outright auctions to purchase Treasury bills from the market at weighted average of 8.30% for a period of 57 days, 8.35% for 64 days and 8.31% for 71 day, valued today.

The net liquidity shortage stood at Rs. 30.60 billion yesterday with a further amount of Rs. 12.83 billion been drawn down from its Standing Lending Facility at 8.50% against an amount of Rs. 23.49 billion been deposited at CBSL’s Standing Deposit Facility (SDF) at the rate of 7.25%.

Rupee losses for a third consecutive day 

The USD/LKR rate on the spot contract depreciated for a third consecutive day to close the day at Rs. 158.65/80 against its previous day’s close of Rs. 158.50/60 on the back of continued importer demand. 

The total USD/LKR traded volume for 3 July was $ 41.00 million. 

Some of forward USD/LKR rates that prevailed in the market were 1 Month - 159.45/60; 3 Months - 161.10/30 and 6 Months - 163.60/80.