Dull sentiment continues ahead of weekly bill auction

By Wealth Trust Securities

The dull sentiment in the secondary bond market continued yesterday, with only the two 2021 (i.e. 01.08.21 and 15.10.21) and two 2024 (i.e. 15.06.24 and 15.09.24) maturities changing hands at levels of 8.70% to 8.75%, 8.80% to 8.85%, 10.23% and 10.28% respectively.

At today’s auction, a total amount of Rs. 20 billion will be on offer which will consist of Rs. 5 billion on the 91-day maturity, Rs. 3 billion on the 182-day maturity and Rs. 12 billion on the 364-day maturity. At last week’s auction, the weighted average on the 364-day bill increased by 05 to 8.41% while all bids received on the 91-day and 182-day bills were rejected.

The total secondary market Treasury bond/bill transacted volume for 23 September was Rs. 4.29 billion. 

In the money market, the overnight call money and repo rates averaged 7.42% and 7.44% respectively as the overnight net liquidity surplus in the system increased to Rs. 19.76 billion yesterday. The Open Market Operations (OMO) department of Central Bank refrained from conducting any auctions.

Rupee appreciates    

The USD/LKR rate on spot appreciated yesterday to close the day at levels of Rs. 181.10/30 against its previous day’s closing levels of Rs. 181.50/60 on the back of selling interest by banks.

The total USD/LKR traded volume for 23 September was $ 109.67 million

Given are some forward USD/LKR rates that prevailed in the market: one month – 181.65/85; three months – 182.65/95; six months – 184.35/65.