Accepted amount outpaces offered amount at weekly TBill auction

Wednesday, 24 April 2013 00:00 - - {{hitsCtrl.values.hits}}

By Wealth trust Securities

Continuing with the recent trends, weighted averages (WAvg) on the 91 day and 182 day bills reflected a dip of 1 basis point each to 9.23% and 10.23% respectively while the WAvg on the 364 day bill remained unchanged at 11.34% at the weekly Treasury bill auction held yesterday. Furthermore the total accepted amount at the auction was Rs 3.99 Bn higher than the initial offered amount of Rs 7 Bn with the 364 day bill continuing to reflect a high proportion of 82% of this volume, satisfying markets continued appetite for this duration. Given below are the details of the auction.

Subsequent to the release of the auction results, buying interest was witnessed on secondary market bills with the 364 day maturity seen changing hands at levels of 11.29% & 11.30% while maturities centring around the 182 day bill was seen changing hands within the range of 10.20% - 10.25%. However yields on secondary market bonds remained mostly unchanged with active two way quotes mainly seen on the liquid two five year durations at levels of 11.38/43. Given below are the closing, secondary market yields for the most frequently traded maturities,

Meanwhile in money markets, the Open Market Operations (OMO) department of Central Bank drained out an amount of Rs.20.1 Bn at a weighted average of 8.35% by way of an overnight Repo auction yesterday as surplus liquidity in money markets remained high at Rs.22.6 billion. This intern saw Overnight call money and repo rates remain steady to average 9.46% and 8.58% respectively.

Rupee remains steady

The dollar rupee rate remained mostly unchanged within the range of Rs.126.75 – 126.85 yesterday. The total USD/LKR volume for the previous day stood at US $ 54.13 million. Given below are some forward dollar rates that prevailed in the market: 1 Month – 127.95; 3 Months- 129.80 and 6 Months- 132.88.