Weighted averages decrease across the board for second consecutive week

• Rupee appreciates for fourth consecutive day

By Wealth Trust Securities

The weighted averages on all three Treasury bill maturities were seen decreasing for a second consecutive week at its weekly auction held yesterday. The 91 day bill registered the highest drop of 06 basis points to 7.50% while the 182 day and 364 day bills recorded drops of 03 and 01 basis point respectively to 7.66% and 8.34%. The total offered amount of Rs. 22 billion was successfully met at the auction as an amount of Rs. 7.2 billion was accepted on the 182 maturity alone against its offered amount of Rs. 6 billion. The bids to offer ratio stood at 2.22:1.  

In the secondary bond market yesterday, activity centred on the liquid maturity of 15.09.24 as its yield was seen dipping to an intraday low of 9.97% against its previous day’s closing level of 9.98/02. In addition, the 15.12.21, 01.07.22, 15.05.23, 15.12.23 and 15.06.27 maturities were seen changing hands at levels of 8.70%, 9.10% to 9.13%, 9.60% to 9.65%, 9.70% and 10.30% respectively as well. 

The total secondary market Treasury bond/bill transacted volume for 22 October was Rs. 8.64 billion. 

In money markets, the overnight call money and repo rates averaged 7.42% and 7.45% respectively as the Open Market Operations (OMO) Department of Central Bank was seen injecting an amount of Rs. 2.00 billion by way of an overnight Reverse repo auction at a weighted average rate of 7.47%. The overnight net liquidity surplus in the system increased to Rs. 22.97 billion yesterday. 

Rupee continues to appreciate

In the Forex market, the rupee on its spot contracts was seen appreciating for a fourth consecutive day to close the day at Rs. 181.30/40 against its previous day’s closing level of Rs. 181.55/70 on the back of continued selling interest by banks.

The total USD/LKR traded volume for 22 October was $ 85.16 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 181.95/15; three months - 183.15/35 and six months - 184.90/30.