364 day bill weighted average dips for the first time in three weeks

Thursday, 28 February 2019 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The 364 day bill weighted average at yesterday’s weekly Treasury bill auction was seen decreasing, reversing two consecutive weeks of increases. The 364 day bill recorded a weighted average of 10.67% following a 06 basis point decrease while all bids received for the 91 day and 182 day bills were rejected. The total offered amount of Rs. 24 billion was accepted only on the 364 day maturity as its total bids received stood at Rs. 50.34 billion against its offered amount of Rs. 15 billion.

The secondary bond market remained active yesterday as yields dipped marginally across the yield curve. The maturities of 01.05.20, two 2021’s (i.e. 01.05.21 & 01.08.21), 15.07.23, 15.03.25, two 2027’s (i.e. 15.01.27 and 15.06.27) and 01.05.29 were seen changing hands at levels of 10.50% to 10.65%, 10.80%, 10.80% to 10.83%, 11.03% to 11.05%, 11.15%, 11.20% to 11.25%, 11.23% to 11.25% and 11.38% to 11.40% respectively.

The total secondary market Treasury bond/bill transacted volumes for 26 February was Rs. 2.63 billion.

In the money market, the overnight call money and repo rates averaged 8.97% and 8.98% respectively as the OMO Department of Central Bank was seen infusing liquidity by way of an overnight and a seven day term reverse repo auction for successful amounts of Rs. 24.3 billion and 5 billion, at weighted average yields of 8.95% and 9.00% respectively. The net liquidity shortfall stood at Rs. 56.67 billion yesterday.

Rupee remains mostly unchanged

The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at levels of Rs. 179.85/00 as markets were at equilibrium.

The total USD/LKR traded volume for 26 February was $ 80.80 million. Some of the forward USD/LKR rates that prevailed in the market were 1 month - 180.80/95; 3 months - 182.70/90 and 6 months - 185.45/75.

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