W. Averages on 91 and 182 day bills dip to 21-month low

• Dull sentiment in secondary bond markets continue
• Rs. 25 billion on offer through primary bond auctions

 By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bills auction on the 91 day and 182 day maturities were seen dipping to a 21-month low of 8.20% and 8.88% respectively, recording drops of 20 and two basis points against its previous week. 

The 364 day maturity recorded a drop as well for the first time in three weeks by two basis points to 9.44%. The total offered amount of Rs. 27 billion was met at the auction as the bid to offer ratio increased to 3.06:1. 

However, activity in the secondary bond market continued to remain dull yesterday with limited amount of trades witnessed on the maturities of 15.01.19 and 01.03.21 at levels of 9.39% to 9.45% and 10.00% respectively.

This was ahead of the Treasury bond auctions due today where a total amount of Rs. 25 billion will be on offer consisting of Rs. 8 billion on a 5.05 year maturity of 15.05.23 and Rs. 17 billion on a 9.06 year maturity of 15.06.27. The previous Treasury bond auctions conducted on 30 October for the maturities of 01.05.20 and 15.10.25 recorded weighted averages of 9.92% and 10.33% respectively.

 The total secondary market Treasury bond/bill transacted volumes for 27 November 2017 was Rs.0 .94 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.14% and 7.57% respectively as the net surplus in the system remained high at Rs. 26.97 billion yesterday. The OMO (Open Market Operations) Department of the Central Bank of Sri Lanka drained an amount of Rs. 8.35 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%.

 Rupee dips

In Forex markets, the USD/LKR rate on spot contracts were seen depreciating marginally yesterday to close the day at Rs. 153.75/80 against its previous day’s closing levels of Rs.153.65/70 on the back of importer dollar demand outweighing inward remittances.

The total USD/LKR traded volume for 27 November 2017 was $ 29.00 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.50/65; three months - 156.30/50 and six months - 158.90/10.