Weekly weighted averages increase across board

By Wealth Trust Securities

The weekly Treasury bill weighted averages were seen increasing across the board yesterday, with the 91-day bill recording a sharp increase of 22 basis points to 8.33% against its previous week. The 182-day bill, which was accepted after a lapse of 12 weeks, saw its weighted average jump by 38 basis points to 8.90% against its weighted average of 8.52% recorded on 21 February. Furthermore, the 364-day bill continued its gradual uptick as well to 9.70%, registering a 5 basis point increase. The total offered amount of Rs. 28 billion was accepted across all three maturities with a total bid-to-offer ratio of 2.53:1. Given below are the details of the auction.

The secondary market bond yields were seen closing the day marginally higher than its previous day’s closings following the outcome of the weekly bill auction. Trades were witnessed on the 01.03.21, 15.03.23, 01.08.24, 01.08.25 and 01.09.28 maturities at levels of 10.05% to 10.10%, 10.35% to 10.40%, 10.50%, 10.55% and 10.65% to 10.66% respectively, pre-auction.

The total secondary market Treasury bond/bill transacted volume for 15 May was Rs. 5.20 billion.

In money markets, the net surplus liquidity was seen increasing to Rs. 11.87 billion yesterday, as call money and repo remained broadly steady to average 7.88% and 7.93% respectively. The OMO (Open Market Operations) Department of the Central Bank drained out an amount of Rs. 10.77 billion on an overnight basis by way of a Repo auction at a weighted average of 7.50%.

Rupee fluctuates 

during the day

The USD/LKR rate on spot contracts was seen dipping to an intraday low of Rs. 158.60 during morning hours of trading yesterday on dollar buying interest, before bouncing back to close the day stronger at Rs. 158.10/30.

Some forward USD/LKR rates that prevailed in the market: 1 Month - 158.90/40; 3 Months - 160.30/70; 6 Months - 162.60/00.