Activity remains dull ahead of weekly bill auction

By Wealth Trust Securities

Activity in the secondary bond market remained dull yesterday ahead of today’s weekly Treasury bill auction.

At today’s auction, the total offered amount will reduce to a five week low of Rs. 18 billion consisting with Rs. 4 billion on the 91 day maturity, Rs. 6 billion on the 182 day maturity and Rs. 8 billion on the 364 day maturity. 

At last week’s auction, the weighted averages continued its upward trend to reflect increases of seven, 14 and 19 basis points respectively to 6.45%, 6.83% and 7.30%. 

In the secondary bond market, very thin volumes of the 15 December 2020 and 1 January 2023 maturities were seen changing hands at levels of 9.75% and 10.61% respectively while in the secondary bill market, January 2016, April 2016 and November 2016 bills were seen quoted at levels of 6.30/40, 6.45/60 and 7.25/40 respectively. 

Meanwhile in money markets, the Open Market Operations department of the Central Bank mopped up a further amount of Rs. 13.60 billion via two term repo auctions yesterday at yields of 6.42% for 14 days and 6.43% for 21 days as surplus liquidity stood at a high of Rs. 88.85 billion. The overnight call money and Repo rates averaged at 6.45% and 6.29% respectively.

Rupee appreciates marginally

 Meanwhile in Forex markets, the rupee on spot contracts appreciated marginally yesterday to close the day at Rs.144.25/35 against the previous day’s closing levels of Rs.144.35/45. The total USD/LKR traded volume for 4 January was $ 61.90 million. 

Given below are some forward USD/LKR rates that prevailed in the market: one month – 144.90/10; three months – 146.10/30; and six months – 147.85/10.