By Wealth Trust Securities

The secondary bond and bill markets remained dull yesterday ahead of today’s Treasury bill auction. In limited trades, the 15.09.24, 15.03.25, two 2026’s (i.e. 01.06.26 & 01.08.26), 01.09.28, 01.05.29 and 15.09.34 maturities changed hands at levels of 9.85% to 9.88%, 10.10%, 10.12% to 10.14%, 10.20%, 10.21% and 10.30%, while the 12 June 2020 and 23 October 2020 bill maturities changed hands at 7.90% and 8.28% respectively.

At today’s Treasury bill auction, the total offered amount of Rs. 25 billion will consist of Rs. 2.5 billion on the 91 day, Rs. 10 billion on the 182 day, and Rs. 12.5 billion on the 364 day maturities. At last week’s auction, the weighted average yields of the 182 day and 364 day maturities increased by 05 and 01 basis points respectively to 7.65% and 8.23% while the weighted average yield of the 91 day maturity remained steady at 7.45%.

Furthermore, no transactions were recorded in the secondary bond market for 16 December.

In money markets, the overnight net liquidity surplus in the system increased to Rs. 27.75 billion yesterday, with overnight call money and repo rates averaging at 7.53% and 7.57% respectively. The OMO Department of the Central Bank was seen infusing liquidity by way of an overnight reverse repo auction for an amount of Rs. 14.10 billion at a weighted average yield of 7.52%.

However, no bids were accepted for the Rs. 12 billion outright sale of Treasury bills for durations of 303 days to 352 days. 

 

Rupee appreciates marginally 

In the Forex market, the USD/LKR rate on the spot contracts were seen appreciating marginally yesterday to close the day at Rs. 181.05/20 against its previous day’s closing level of Rs. 181.20/30 on the back of selling interest by Banks and seasonal inflows. 

The total USD/LKR traded volume for 16 December was $ 59.07 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 month - 181.50/65; 3 months - 182.35/55 and 6 months - 184.05/45.

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