364 day bill average increases once again

• Total offered amount accepted on a single maturity once again
• First round of primary auctions excluding W.H.T to be conducted today

 By Wealth Trust Securities

The 364 day bill weighted average was seen increasing once again at its weekly Treasury bill auction held yesterday, recording an increase of three basis points to 9.69%. 

Replicating the 7 March 2018 Treasury bill auction outcome, the total offered amount of 25.5 billion was accepted only on the 364 day maturity once again, rejecting all bids for the 91 day and 182 day maturities. The bids to offer ratio decreased to 2.24:1.

Today’s Treasury bond auctions, in lieu of a Treasury bond maturity of Rs. 92.4 billion due on 1 April 2018, will be the first round of primary auctions excluding the 10% W.H.T (With Holding Tax) on Government Securities. 

A total amount of Rs.80 billion will be on offer consisting of Rs.50 billion on a new 4.11 year maturity of 15.03.2023 and Rs.30 billion on a 10.05 year maturity of 01.09.2028. The weighted average yields at the auctions conducted on 26 February 2018 for the maturities of 01.03.2021 and 01.08.2025 stood at 9.85% and 10.34% respectively.

In the secondary bond market, yields increased further on thin volumes with selling interest mainly on the maturities of 01.03.21 and 01.08.21 resulting in its yields hitting intraday highs of 10.00% each. Furthermore, considerable selling interest on September, October and December 2018 Treasury bills saw it changing hands at highs of 8.85%, 8.95% and 9.37% respectively as well.

The total secondary market Treasury bond/bill transacted volumes for 26 March 2018 was Rs.7.87 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 25 billion on an overnight basis by way of an overnight repo auction at a weighted average of 7.27% as the net surplus liquidity in the system stood at Rs.31.51 billion yesterday. The overnight call money and repo rates averaged 8.15% and 7.64% respectively.

Rupee appreciates marginally

The USD/LKR rate on spot contracts appreciated marginally yesterday on the back of selling interest to close the day at Rs.156.00/05against its previous day’s closing of Rs.156.10/15.

The total USD/LKR traded volume for 26 March 2018 was $ 96.5 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 156.68/78; 3 months - 158.30/45 and 6 months - 160.70/00