Secondary bond market at a standstill ahead of weekly bills auction

By Wealth Trust Securities

Activity in the secondary bond market was at a standstill yesterday, with the dull momentum continuing for a second consecutive day ahead of today’s weekly Treasury bills auction.

 At today’s auction, the total offered amount will be at Rs. 23 billion consisting of Rs. 5 billion on the 91 day maturity which incidentally will be on offer after a lapse of four weeks followed by Rs. 6 billion on the 182 day maturity and Rs. 12 billion on the 364 day maturity. At last week’s auction, the weighted averages on both the 182 day and 364 day maturities continued its downward trend to reflect decreases of 11 basis points and 10 basis points respectively to 8.94% and 9.10%.

Meanwhile, the Central Bank of Sri Lanka was seen keeping its policy rates unchanged at 7.25% and 8.75% at its sixth monetary policy announcement yesterday.

The total secondary market Treasury bond/bill transacted volumes for 25 September 2017 was Rs. 5.02 billion.

In money markets, the overnight call money and repo rates averaged 8.11% and 7.99% respectively as the OMO department of Sri Lanka was seen draining out an amount of Rs. 16 billion on an overnight basis by way repo auction at a weighted average of 7.25%. The net surplus liquidity in the system increased to Rs. 14.61 billion yesterday.

Rupee remains 

mostly unchanged

 The USD/LKR rate on the active spot contract was seen closing the day broadly steady at Rs. 152.95/05 yesterday as markets were at equilibrium.  

 The total USD/LKR traded volume for 25 September 2017 was $ 31.10 million.

 Some of the forward USD/LKR rates that prevailed in the market were one month - 153.70/80; three months - 155.25/35 and six months - 157.35/45.