Weekly weighted averages continue to tumble

By Wealth 

Trust Securities

The weekly Treasury bill weighted averages at yesterday auction were seen dipping considerably as the bids to offer ratio hit a twenty (20) week high of 4.56:1. 

The 91-day bill reflected the sharpest decline of 23 basis points to 7.97% closely followed by the 182-day bill by 12 basis points to 8.76% and the 364 day bill by 10 basis points to 9.34%. The exact offered amounts of Rs. 7.5 billion and Rs. 7 billion on the 182-day and 364-day maturities respectively were accepted at the auction, while 91-day maturity fell short by just Rs. 0.3 billion. 

In the secondary bond market yesterday, yields were seen dipping leading to the auction as activity increased marginally. The liquid maturities of two 2019s (i.e. 01.07.19 and 15.09.19), 01.05.21, 15.05.23 and 15.06.27 saw its yields hitting intraday lows of 9.55%, 9.58%, 10.02%, 10.16% and 10.35% respectively against its previous day’s closing levels of 9.60/70, 9.60/75, 10.00/10, 10.12/20 and 10.35/40. On the short end of the curve, 01.04.18 maturities changed hands at levels of 8.05% while in the secondary bill market, May 2018 bills were seen trading at a low of 8.76% prior to the auction outcome. The total secondary market Treasury bond/bill transacted volumes for 5 December was Rs. 2.76 billion. In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.14% and 7.53% respectively as the OMO Department of the Central Bank of Sri Lanka were seen draining out an amount of Rs. 18.10 billion on an overnight basis by way of a repo auction at a weighted average of 7.25%. The net surplus liquidity in the system stood increased further to Rs. 36.54 billion.

 Rupee remains mostly unchanged

The USD/LKR rate on spot contracts remained mostly unchanged yesterday to close the day at Rs. 153.30/35.

The total USD/LKR traded volume for 5 December was $ 52.80 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.20/35; three months - 155.90/00 and six months - 158.50/60.