364 day bill weighted average increases for 1st time in 3 weeks

By Wealth Trust Securities

The weighted average on the 364 day bill was seen increasing by seven basis points yesterday to 10.17%, reversing a downward trend witnessed over the previous two weeks. However, the weighted averages on the 182 day bill dipped by one basis point to 9.53% while the 91 day bill remained steady at 8.45% at its weekly auction conducted yesterday. 

The total accepted amount was seen exceeding the total offered amount of Rs. 25 billion by Rs. 7.90 billion or 31.61% while the total bids to offer ratio was seen dipping to a four week low of 2.38:1. 

In secondary bond markets, yields were seen closing the day broadly steady yesterday subsequent to dealing within a thin range. Activity centred on the 01.05.20, 01.08.21, 01.01.24, 01.06.26, 01.09.28 and 15.05.30 maturities within range of 11.30% to 11.40%, 11.45% to 11.50%, 11.95% to 12.05%, 12.18% to 12.20%, 12.40% to 12.50% and 12.47% to 12.50% respectively. In the secondary bill market, the 182 and 364 day bills were quoted at levels of 9.35/60 and 10.15/25 post auction. 

In money markets, the net deficit was seen improving to a seventh trading day high of Rs. 28.94 billion yesterday with an amount Rs. 30 billion been injected at a weighted average of 7.98%. The repo weighted averages eased marginally to 8.09% while call money remained steady at 8.15%.

Rupee continues to 

dip further

The USD/LKR rate on the spot next contract was seen dipping further to close the day at Rs. 145.90/30 yesterday against its previous day’s closing of Rs. 145.70/00 on the back of continued demand for the greenback. The total USD/LKR traded volume for 18 March was at $ 57.60 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month – 147.10/30; three months – 148.85/00; and six months – 151.30/50.