Weekly weighted averages continue to decrease

By Wealth Trust Securities

The declining trend  in weekly Treasury bill weighted average yields continued for a fifth consecutive week, with the 364 day bill dipping below the 9.00% psychological level for the first time since  24 February 2016 to 8.92%. 

The 364 day bill recorded a decline of 12 basis points, closely followed by the 182 maturity by eight basis points to 8.40%. The 91 day bill in the meantime registered a weighted average yield of 7.69% against its previous level of 7.97%. The exact offered amount of Rs. 22.5 billion was accepted at the auction as the bid to offer ratio increased to 2.77: 1.

In the secondary bond market, yields were seen decreasing leading up to the auction, with the two 2021 liquid maturities (i.e. 01.03.21 and 01.05.21), 01.08.26 and the 15.05.30 maturity dipping to intraday lows of 9.68%, 9.70%, 10.15% and 10.47% respectively. Furthermore, the 15.06.27 maturity too was traded at levels of 10.25%.

The total secondary market Treasury bond/bill transacted volumes for 19 December was Rs. 1.53 billion.

In money markets, the Open Market Operations (OMO) Department of the Central Bank was seen mopping up an amount of Rs. 8.73 billion on an overnight basis at a weighted average of 7.25% as net surplus liquidity stood at Rs. 23.28 billion. The overnight call money and repo rates averaged 8.11% and 7.53% respectively.

 Rupee appreciates

The USD/LKR rate on spot contracts was seen appreciating yesterday, to close the day at Rs. 152.90/05 against its previous day’s closing levels of Rs. 153.10.20, on the back of exporter dollar conversions.

The total USD/LKR traded volume for 19 December was $ 74.95 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 153.85/00; three months - 155.60/70 and six months - 158.40/55.