364-day Treasury bill W.Avg decreases to 16-week low

By Wealth Trust Securities

Continuing a trend that has been prevalent over the last seven weeks, the weekly Treasury bill weighted averages at yesterday’s primary auction continued to decline, with the 364-day maturity dropping sharply by 11 basis points to a 16-week low 10.50% and the 182 day maturity by four basis points to 10.30%. The weighted average yield of the 91-day maturity stood steady at 9.60%. 

The auction attracted successful bids of Rs.25.62 billion against a total offered amount of Rs.26.00 billion.

The secondary bond market remained active yesterday, as yields of the two liquid 2021 maturities of  (i.e. 01.08.21 and 15.12.21), 2023’s (i.e. 15.05.23 and 01.09.23), 01.08.24, 15.03.25, and 01.08.26 decreased further to hit intraday lows of 11.23%, 11.24%, 11.36%, 11.35% 11.40% and 11.48% respectively, prior to bouncing back to close the day at levels of 11.26/30, 11.28/32, 11.37/43, 11.38/45, 11.43/48, 11.40/55 and 11.48/54. In the secondary bill market, the 364 day bill was seen changing hands at levels of 10.30% post auction. The total secondary market Treasury bond transacted volume for 13 June was Rs. 9.54 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged 8.75% and 8.81% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka injected an amount of Rs. 6.95 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 8.75%. The net liquidity shortfall in the system increased to Rs. 10.09 billion.

 Rupee trades 

at a narrow range    

The USD/LKR on spot next contracts, was seen changing hands within the range of Rs. 152.98 to Rs. 153.00 against its pwrevious day’s closing levels of Rs. 152.95/00. The total USD/LKR traded volume for 13 June was $ 46.00 million. Given are some forward USD/LKR rates that prevailed in the market: one month – 154.00/10; three months – 156.05/25; six months – 159.00/10.