364 day bill average ticks higher

By Wealth Trust Securities

The weighted average on the 364 day bill was seen increasing for a second consecutive week to 9.65%, recording a 04 basis point upward tick. All bids received for the 182 day bill were rejected while the 91 day was accepted at a weighted average of 8.11%, recording a 01 basis point increase after a lapse of one week. The total accepted amount was seen falling short of the total offered amount for the first time in nine weeks, with Rs 22.66 billion been accepted against Rs 28 billion on offer. The total bids to offer ratio dipped to a six week low of 2.21:1 as well. 

Secondary market bond yields were seen increasing once again in thin trade mainly on the belly end of the curve. Selling interest on the 01.08.26 and 01.09.27 maturities saw its yields increase to daily highs of 10.72% and 10.78% respectively against its day opening lows of 10.70% each. In addition, the 01.08.21 maturity was seen changing hands within the range of 10.16% to 10.27%, 15.03.23 within 10.43% to 10.47% and 01.08.24 at 10.55%. The total secondary market Treasury bond/bill transacted volume for 4 May was Rs. 6 billion.

In the money market, net liquidity was seen dipping once again to Rs 7.45 billion yesterday as the OMO department drained out an amount of Rs 3.41 billion at a weighted average of 7.54%. Call money and repo averaged 7.87% and 7.99% respectively.

Rupee dips once again

The USD/LKR rate on spot contracts depreciated marginally yesterday to close the day at Rs. 157.85/00 against its days opening of Rs. 157.55/85 on the back of importer demand.

The total USD/LKR traded volume for 8 May was $27.38 million.

Some forward USD/LKR rates that prevailed in the market are: 1 Month - 158.50/65; 3 Months - 160.00/20; 6 Months - 162.25/50.