Upward trend in weekly Treasury bill averages continue

By wealth trust Securities

The increasing trend in the weekly weighted averages continued at yesterday’s Treasury bill auction, with the weighted average on the 91 day and 182 day bills increasing by 04 basis points each to 8.37% and 8.94% respectively. This was closely followed by the 364 day bill as it was seen increasing by 03 basis points to 9.73%. The 364 day bill drew Rs. 4.14 billion more in successful bids against its offered amount of Rs. 12 billion as the total offered amount of Rs. 26 billion was successfully subscribed to from the 91 day and 182 day bills as well. The bid to offer ratio decreased to 2.43: 1. 

Meanwhile in the secondary bond market, yields remained broadly unchanged yesterday as activity remained moderate. A limited amount of trades were seen on the 15.08.18, 01.08.21 and 15.03.23 maturities at levels of 8.60%, 10.00% and 10.39% to 10.40% respectively. The total secondary market Treasury bond/bill transacted volume for 22 May was Rs. 6.66 billion.

In money markets, the OMO Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 3 billion on an overnight basis by way of a repo auction at a weighted average of 7.34% as the net surplus liquidity in the system stood at Rs. 2.87 billion yesterday. The overnight call money and repo rates averaged at 7.92% and 7.91% respectively.

 Rupee appreciates marginally

In the Forex market, the USD/LKR rate on the spot contract appreciated marginally to close the day at Rs. 157.90/00 against its previous day’s closing levels of Rs. 158.00/10 on the back of selling interest by banks.

The total USD/LKR traded volume for 22 May was $64.80 million.

Some forward USD/LKR rates that prevailed in the market: 1 Month - 158.70/00; 3 Months - 160.25/35; 6 Months - 162.50/65.