364 day bill weighted average decreases to a 22-week low

By Wealth 

Trust Securities

The 364 day bill weighted average at yesterday’s weekly Treasury bill auction was seen decreasing to a 22-week low of 9.31%, recording a week on week decrease of 12 basis points.  This was closely followed by the 91 day and 182 day maturities, recording drops of 12 and 10 basis points respectively to 8.25% and 8.75%. The total offered amount of Rs. 15 billion was fully accepted with the bids to offer ratio increasing to a six weeks high of 5.54:1. 

The secondary bond market remained active yesterday as continued buying interest on the maturities of 01.07.19, two 2021’s (i.e. 01.03.21 and 01.05.21), 15.03.23, 01.08.24, 15.10.25 and 01.09.28 saw its yields dip to intraday lows of 9.30%, 9.80%, 9.85%, 10.21%, 10.28, 10.40% and 10.54% respectively against its previous day’s closing levels of 9.40/45, 9.90/95, 9.95/00, 10.32/35, 10.38/45, 10.45/50 and 10.55/65. In addition the maturities of 15.01.19, 15.09.19, 01.08.20, 15.12.20, 01.10.22 and 01.08.26 changed hands at levels of 8.90%, 9.40% to 9.42%, 9.70% to 9.73%, 9.80%, 10.15% to 10.25% and 10.40% to 10.45% respectively as well. In the secondary bill market, September and November 2018 maturities along with January and May 2019 maturities changed hands at levels of 8.36%, 8.70%, 8.90% and 9.20% to 9.25% respectively. The total volume of Treasury bonds/bills transacted in the secondary market on 17 July was Rs. 4.15 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average at 8.49% and 8.33% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 9.15 billion on an overnight basis by way of a Repo auction at a weighted average of 8.07%.  The net surplus in the system decreased to Rs. 12.25 billion yesterday. 

 Rupee closes mostly unchanged 

In Forex markets, the spot rate was seen closing mostly unchanged at Rs. 159.95/00, subsequent to trading within the range of Rs. 160.00 to Rs. 160.10.

The total USD/LKR traded volume for 17 July was $ 53.55 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 160.75/85; 3 Months - 162.40/50 and 6 Months - 164.75/00.