Weekly T-bill weighted averages dip for first time in five weeks

Thursday, 31 May 2018 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weekly weighted averages at yesterday’s Treasury bill auction were seen declining for the first time in five weeks, reversing its upward trend. The 91 day, 182 day and 364 day maturities dipped by 03, 01 and 11 basis points respectively to 8.34%, 8.93% and 9.62%. The total offered amount of Rs. 12 billion was fully accepted, as the auction attracted bids totalling to Rs. 66.29 billion.

In the secondary bond market, the downward trend in yields continued and gathered momentum following the outcome of the bill auction. The liquid maturities of 15.03.23 and the two 2028’s (i.e. 15.03.28 & 01.09.28) were seen dipping to intraday lows of 10.33% and 10.60% each respectively against its days opening highs of 10.45% and 10.70%. In addition, the 01.07.19, 01.03.21 and 15.12.21 maturities were seen dipping to lows of 9.67%, 9.90% and 10.00% respectively as well. Furthermore, the 364 day Treasury bill was quoted at 9.50/58, post auction.

The total secondary market Treasury bond transacted volume for 25 May was Rs. 11.01 billion. In the money market, overnight call money and repo rates remained mostly unchanged to average 7.91% and 7.86% respectively as the net surplus liquidity increased to Rs. 11.20 billion yesterday. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen draining an amount of Rs. 11.00 billion at a weighted average of 7.40% by way of an overnight repo auction.

Rupee losses again

In the Forex market, the USD/LKR rate on the spot contract depreciated marginally to close the day at Rs. 158.15/30 against its previous day’s closing levels of Rs. 157.95/00 on the back of importer dollar demand.

The total USD/LKR traded volume for 28 May was $55.50 million.

Some forward USD/LKR rates that prevailed in the market: 1 month - 158.90/15; 3 months - 160.50/65; 6 months - 162.75/95.