364 day bill weighted average yield holds steady

Wednesday, 22 August 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The 364 day bill weighted average yield at the weekly auction held yesterday remained steady at 9.00%, subsequent to falling over the past five weeks.

However, the average yields of the 91 day and 182 day maturities continued to decrease to record 8.09% and 8.60% respectively, in comparison to the previous week’s 8.10% and 8.62%. The exact offered amount of Rs. 18 billion was accepted in total as the bid to offer ratio stood at 2.87:1.

Given below are the details of the auction.

In the secondary bond market, selling interest witnessed over the previous few days continued yesterday as well, driving yields up marginally. Activity was witnessed around the maturities of 01.05.20, 01.03.21, two 2023s (i.e. 15.03.23 and 15.07.23) and 01.08.24 at levels of 9.35%, 9.56% to 9.60%, 9.94% to 10.02% and 10.15% respectively. Nonetheless, buying interest subsequent to the bill auction curtailed any further upward movement.

The total secondary market Treasury bond/bill transacted volumes for 20 August 2018 was Rs. 1.92 billion.

Given below are the closing, secondary market yields of the most frequently traded T-bills and bonds.

In money markets, overnight call money and repo rates averaged 7.83% and 7.77% respectively as net surplus liquidity in the system stood at Rs. 29.64 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 21.89 billion on an overnight basis at a weighted average of 7.56%.

Rupee continues

to depreciate

The USD/LKR rate on spot contracts depreciated further yesterday to close the day at levels of Rs. 160.65/70 against the previous day’s closing levels of Rs. 160.50/60 on the back of continued importer demand.

The total USD/LKR traded volume for 20 August 2018 was $ 51.50 million.

Given below are some forward USD/LKR rates that prevailed in the market.

1 Month - 161.45/60

3 Months - 163.05/35

6 Months - 165.45/85

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