Bond market activity at complete standstill ahead of weekly bill auction

Wednesday, 2 May 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

Activity in the secondary bond market was at a complete standstill yesterday ahead of today’s bill auction, where a total amount of Rs. 28 billion will be on offer consisting Rs. 4 billion on the 91 day maturity, Rs. 5 billion on the 182-day maturity and Rs. 19 billion on the 364-day maturity.

At last week’s auction, the weighted averages on the 91-day and 364-day bills declined by five and six basis points respectively to 8.10% and 9.59% respectively while all bids received on the 182-day bill were rejected for a ninth consecutive week.

The total secondary market Treasury bond transacted volume for 27 April was Rs. 6.07 billion.

Meanwhile in money markets, the overnight call money and repo rates averaged 7.87% and 7.98% respectively as the Open Market Operations (OMO) Department of Central Bank was seen draining out an amount of Rs. 7.50 billion on an overnight basis at a weighted average of 7.54%. The net surplus liquidity increased to Rs. 17.03 billion yesterday.

Rupee remains mostly unchanged

The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at Rs. 157.75/90 as markets were at equilibrium.

The total USD/LKR traded volume for 27 April was $ 86.25 million.

Given are some forward USD/LKR rates that prevailed in the market: One month – 158.60/70; three months – 160.05/15; six months – 162.25/35.

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