364-day bill weighted average jumps to 4-month high

By Wealth Trust Securities

The weekly weighted averages recorded steep increases at its auctions conducted yesterday with the 364-day bill increasing by 46 basis points to a four month high of 9.51%. 

The 91-day bill increased by 49 basis points as well to 8.56% while the 182-day bill was not on offer. Only an amount of Rs .5.1 billion was accepted in total at the auction against a total offered amount of Rs. 8 billion.  

In the secondary bond market, yields of the liquid maturities of 15.10.21, two 2023s (i.e. 15.03.23 and 15.07.23) and 01.08.24 were seen increasing further to intraday highs of 10.55%, 10.68%, 10.70% and 10.80% respectively against its previous day’s closing levels of 10.45/50, 10.60/65, 10.65/68 and 10.70/78. 

Furthermore, maturities consisting of 2018s (i.e. 15.10.18 and 15.11.18) 01.05.20, 15.03.25 and 15.03.28 were traded at levels of 8.97% to 9.05%, 9.75%, 10.95% and 10.90% respectively as well. The total secondary market Treasury bond/bill transacted volumes for 25 September was Rs. 8.09 billion. 

In money markets, the overnight call money and repo rates increased further to average 8.29% and 8.19% respectively as the net liquidity shortfall stood at a high of Rs. 57.26 billion yesterday. The Open Market Operations (OMO) department of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 25 billion each on an overnight basis and seven days at weighted averages of 8.13% and 8.20% respectively. 

Rupee closes 

broadly steady  

 Meanwhile in the Forex market, the USD/LKR rate on the spot contracts was seen closing the day broadly unchanged at Rs.168.95/15. The total USD/LKR traded volume for 25 September was $ 72.75 million. Given are some forward USD/LKR rates that prevailed in the market: one month – 170.00/30; three months – 171.80/20; six months – 174.30/70.