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Tuesday, 30 June 2020 00:49 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The trading week commenced with the weighted average rates recording bullish outcomes at its Treasury bond auctions held yesterday keeping with its recent trend as the total offered amount of Rs. 60 billion was successfully accepted at its first phase of the auctions. 
The two-year and five months maturity of 15.12.2022 recorded a weighted average of 5.86%, equal to its pre-auction rate of 5.85/95, but well below its stipulated cut off rate of 6.20%.
The seven-year and one month maturity of 15.08.2027 fetched a weighted average of 6.97%, below its pre-auction rate of 7.00/15 for a similar maturity and well below its stipulated cut off rate of 7.30%.
The bids to offer ratio stood at 2.30:1.
Secondary bond market yields were seen decreasing subsequent to auction results yesterday as the liquid maturities of 15.01.23 and 15.09.24 hit lows of 5.95% and 6.47% respectively against its opening highs of 6.06% and 6.60%. Furthermore, activity was also witnessed consisting of the 2023’s (i.e. 15.07.23, 01.09.23, 15.12.23), 01.02.26 and 15.10.27 at levels 6.10% to 6.30%, 6.70% and 6.90% to 6.95%.
The total secondary market Treasury bond/bill transacted volume for 26 June was Rs. 23.23 billion. In money markets, the weighted average rates on overnight call money and repo were recorded at 5.51% and 5.54% respectively as the overnight net liquidity surplus in the system stood at a high of Rs. 196.78 billion yesterday.
Rupee appreciates
In Forex markets, the USD/LKR on spot contracts were seen appreciating marginally yesterday to close the day at Rs. 186.15/25 against its previous day’s closing days of Rs. 186.25/35 on the back of selling interest by banks.
The total USD/LKR traded volume for 26 June was $ 118.09 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
