Friday Sep 20, 2024
Friday Sep 20, 2024
Monday, 18 November 2019 02:32 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The activity levels in both the bill and bond markets slowed down considerably during the shortened trading week ending 15 November as a result of persistent bearish market conditions ahead of the Presidential Election.
The outcome of the weekly Treasury bill auction at where the total accepted volume was seen falling short of the total offered volume for the first time in 13 weeks while its weighted average was seen increasing to a 18-week high of 8.51% was seen contributing further to the bearish sentiment. 
In the secondary bond market, selling interest saw yields increasing marginally with the liquid maturities of 15.09.24, 15.10.27 and 15.09.34 hitting weekly highs of 10.07%, 10.34% and 10.72% respectively against its previous weeks closing levels of 10.02/07, 10.27/32 and 10.65/75, admit moderate volumes. In the secondary bill market, the latest 364-day bill traded at a high of 8.60%.
The foreign holding in rupee bonds increased for a fourth consecutive week with an inflow of Rs. 2.2 billion for the week ending 13 November. The daily secondary market Treasury bond/bills transacted volume for the first two days of the week averaged Rs. 6.95 billion.
In money markets, the overnight call money and repo rates averaged 7.52% and 7.58% respectively for the week as the Open Market Operations (OMO) Department of Central Bank injected liquidity during the week by way of overnight, seven day and 14-day reverse repo auctions at weighted average yield ranging from 7.53% to 7.65% respectively.
The overall money market deficit was seen increasing further to Rs. 17.9 billion against its previous week’s net deficit of Rs.9.57 billion.
Rupee appreciates
In the Forex market, persistent selling interest by banks saw the USD/LKR rate on spot contracts appreciate during the week to close the week at Rs. 180.25/30 against its previous week’s closing levels of Rs. 180.45/65 subsequent to trading at a low of Rs. 180.45 and a high of Rs. 180.
The daily USD/LKR average traded volume for the first two days of the week stood at $ 64.87 million.
Some of the forward dollar rates that prevailed in the market were 1 month – 180.75/00; 3 months – 181.85/15 and 6 months - 183.60/00.
