Activity remains dull ahead of weekly bills auction

By Wealth Trust Securities

The activity in the secondary bond market remained rather dull yesterday ahead of today’s weekly Treasury bill auction. At today’s auction, a nine week high total offered amount of Rs. 23 billion will consist of Rs. 7.5 billion, Rs. 3.5 billion and Rs. 12 billion on the 91 day, 182 day and 364 day maturities respectively.

At last week’s auction, the weighted averages decreased across the board by 14, 11 and 16 basis points respectively to 8.24%, 8.49% and 8.70% on the 91 day, 182 day and 364 day maturities.

In the secondary bond market, limited trades were witnessed on the 15.09.19, 01.03.21, 01.07.22, two 2023s (i.e. 15.07.23 & 15.12.23), two 2024s (i.e. 15.03.24 & 15.06.24), 15.01.27 and 01.05.29 maturities at levels of 8.40%, 9.12%, 9.60%, 9.82% to 9.85%, 9.88%, 10.20% and 10.35% to 10.36% respectively.

The total secondary market Treasury bond/bill transacted volumes for the 1 July 2019 was Rs. 2.79 billion. 

In money markets, the OMO Department of the Central Bank of Sri Lanka mopped up in total an amount of Rs. 27.2 billion by way of overnight, seven day and nine day repo auctions at weighted average ranging from 7.73% to 7.85% as the net surplus liquidity stood at high of Rs. 28.28 billion yesterday. The overnight call money and repo rates averaged 7.82% and 7.86% respectively.

Rupee losses marginally

In the Forex market, the USD/LKR rate on spot contracts deprecated once again to close the day at Rs. 176.30/40 against its previous day’s closing levels of Rs. 176.25/35.

The total USD/LKR traded volume for the 1 July 2019 was $ 105.34 million

Some of the forward USD/LKR rates that prevailed in the market were one month - 176.95/15; 3 months - 178.35/65 and six months - 180.35/65.