Weekly weighted averages increase

By Wealth Trust Securities

The weekly weighted averages were seen increasing yesterday, reversing a downward trend witnessed the previous week. The 182 day bill was seen reversing its fourteen weeks downward trend to record an increase of 04 basis points to 7.99% followed by the 364 day bill as well by 04 basis points to 8.94%. The 91 day bill which was offered after a lapse ofsix weeks, recorded a weighted average yield of 7.75% against its previous weighted average of 7.69%. The total offered amount of Rs. 28 billion was successfully subscribed for at the auction as the bids to offer ratio stood at 2.34:1. 

Nevertheless, yields in the secondary bond market remained mostly unchanged with liquid 2021 (i.e. 01.03.21, 01.05.21 and 01.08.21), 15.05.23 and 15.06.27 maturities changing hands at levels of 9.35%, 9.36% to 9.38%, 9.40% to 9.52%, 9.50% to 9.52% and 9.85% respectively.  In addition, activity was witnessed on the 2018, 2020 and 2024 maturities within in the range of 7.80% to 8.50%, 9.30% to 9.35% and 9.81% to 9.82% respectively as well. 

In money markets, the overnight call money and repo rates averaged at 8.14% and 7.63% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 3.47 billion on an overnight basis by way of a Repo auction at a weighted average of 7.25%. The net liquidity surplus stood at Rs. 6.83 billion yesterday. 

Rupee appreciates marginally  

The USD/LKR rate on spot contracts appreciated marginally yesterday for the first time in six days to close the day at levels of Rs. 154.50/60 against its previous day’s closing levels of Rs. 154.60/70 on the back of selling interest by banks. 

The total USD/LKR traded volume for 6 February was $67.50 million. 

Some of the forward USD/LKR rates that prevailed in the market were 1 Month – 155.40/45; 3 Months – 157.00/15 and 6 Months – 159.50/65.