Bond auction weighted averages increase

By Wealth Trust Securities

The two Treasury bond auctions conducted yesterday saw its weighted averages increase marginally in comparison to its previous weighted average or to a similar duration as its total offered amount of Rs. 25 billion was met. 

The weighted average on the 9.06-year maturity of 15.06.2027 was seen increasing by five basis points to 10.36% against its previous average recorded on 28 September while the 5.05 year maturity of 15.05.2023 registered a weighted average of 10.20% in comparison to a five-year maturity of 01.10.2022 which recorded a weighted average of 10.09% on 28 September 2017 as well. 

However, activity in the secondary bond market remained rather dull with limited amount of trades seen on the two 2021 maturities (i.e. 01.03.21 and 15.12.21) within the range of 10.00%-10.08%.

The total secondary market Treasury bond/bill transacted volumes for 28 November was Rs. 2.21 billion.

In money markets, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen draining an amount of Rs. 19.00 billion on an overnight basis by way of a Repo auction at a weighted average of 7.25% as the net surplus in the system increased to Rs. 30.36 billion yesterday. The overnight call money and repo rates averaged 8.12% and 7.59% respectively.

Rupee remains 

mostly unchanged

In Forex markets, the USD/LKR rate on spot contracts remained mostly unchanged to close the day at Rs. 153.78/83. 

The total USD/LKR traded volume for 28 November was $ 38.55 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.60/75; three months - 156.35/40 and six months - 159.00/10.