Activity in secondary bill and bond markets slow down

 By Wealth Trust Securities

Activity in both bill and bond markets slowed down considerably during the shortened trading week ending 15 April due to the holidays. The weekly treasury bill weighted averages were seen declining for a second consecutive week while in bond markets, the maturities consisting of the 01.05.20, 01.08.21, 15.03.25, 01.06.26 and 15.05.30 traded at weekly lows of 11.32%, 11.43%, 12.00%, 12.15% and 12.43% respectively in comparison to its previous weeks closing levels of 11.40/55, 11.50/60, 12.00/10, 12.15/20 and 12.45/55. 

Furthermore, the 2017 bond maturities were seen changing hands within the range of 10.05% to 10.25% whilst yields in the secondary bill market centring the 182 day and 364 day maturities were quoted at levels of 9.25% to 9.50% and 9.80% to 10.10% respectively.

This was ahead of today’s Treasury bond auctions, where an total amount of Rs. 15 billion will be on offer consisting of Rs. 5 billion each on a 4.08 year maturity of 15.12.2020, a 6.05 year maturity of 01.10.2022 and a 7.08 year  maturity of 01.01.2024.

Meanwhile in money markets, the overnight call money and Repo rates remained mostly unchanged during the week as liquidity was continuously infused by way of overnight Reverse repo auctions at weighted average of 7.99% by the Open Market Operations (OMO) department of Central Bank.

Rupee depreciates during the week

The rupee on spot next contracts was seen depreciating during the week ending 15 April to close at Rs. 145.40/75 against its previous weeks closing level of Rs. 144.90/20 on the back of seasonal importer demand. The daily USD/LKR average traded volume for the first two days of the week stood at $ 75.76 million. 

Some of the forward dollar rates that prevailed in the market were one month – 146.25/50; three months – 148.00/30 and six months – 150.30/60.