Mixed outcome at weekly Treasury bill auction

Thursday, 26 October 2017 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday witnessed mixed fortunes with the weighted average on the 364-day bill increasing by 05 basis points to cross the 9.50% level for the first time in seven weeks to record 9.51% while the 91-day bill decreased by 03 basis points to 8.76%.

The weighted average on the 182-day bill remained steady at 9.12% as the bid to offer ratio was seen increasing to a six-week high of 3.12:1. The total accepted amount was seen falling short of the total offered amount of Rs. 20 billion by just 0.40 billion. Nevertheless, activity in the secondary bond market continued to remain very dull yesterday with the two 2018s (i.e. 01.04.18 and 01.06.18), 15.09.19 and 15.12.21 maturities changing hands at levels of 9.10% to 9.20%, 9.75% to 9.80% and 10.10% respectively.

The total secondary market Treasury bond/bill transacted volumes for 24 October was Rs.1.42 billion.

In money markets, the overnight call money and repo rates averaged 8.14% and 7.67% respectively as the OMO department of Sri Lanka was seen draining out an amount of Rs. 12 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%.

The net surplus liquidity in the system stood at Rs.14.98 billion yesterday.

Rupee steady

The USD/LKR rate on its spot contracts was seen closing the day steady at Rs. 153.80/90 subsequent to dipping to an intraday low of Rs. 153.92.

The total USD/LKR traded volume for 24 October was $ 114.80 million.

Given are some forward USD/LKR rates that prevailed in the market: one month – 154.60/70; three months – 156.45/55; six months – 158.75/90.

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