364 day bill average jumps 11% first time in close to 4 years

By Wealth Trust Securities

The 364 day bill weighted average was seen increasing by four basis points surpassing the 11.00% psychological level for the first time since 8  May 2013 as it recorded 11.02% at its auction conducted yesterday, recording its ninth consecutive week of increases. 

Furthermore, the 182 day recorded an increase of seven basis points to 10.69% followed by the 91 day by four basis points to 9.67%. In total an amount of Rs. 25.00 billion was accepted against its initial total offered amount of Rs. 25 billion. 

The secondary bond market remained active as yields continued to dip on the back of local and foreign buying interest. The liquid maturities of 15.12.21 and 01.01.24 dipped to intraday lows of 12.40% and 12.68% respectively against its previous day’s closing levels of 12.49/50 and 12.75/80. %. In addition, the 01.07.19, 01.05.21 and 01.08.21 maturities were seen changing hands at levels of 11.86% to 11.88%, 12.38% and 12.40% to 12.47% respectively as well.

Meanwhile, in money markets, the Open Market Operations (OMO) Department of the Central Bank drained out an amount of Rs. 22.30 billion on an overnight basis at a weighted average of 7.71% by way of a repo auction as net liquidity in the system reversed back to a surplus of Rs. 27.63 billion yesterday after a lapse of three days. The overnight call money and repo rates averaged 8.75% and 8.87% respectively.

Rupee dips marginally

The USD/LKR rate on active spot next contracts were seen depreciating marginally yesterday to close the day at levels of Rs. 152.05/20 against its previous day’s closing levels of Rs. 151.96/00 on the back of importer demand while two weeks forward contracts were quoted at Rs. 152.35/50.

The total USD/LKR traded volume for 4 April 2017 was $ 39.15 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.10/25, three months - 155.10/30 and six months - 158.10/30.