Bond market at a standstill ahead of weekly bill auction

By Wealth Trust Securities

The activity in secondary bond markets was at a complete standstill yesterday ahead of today’s weekly Treasury bills auction. Two way quotes were seen increasing and widening. 

The Treasury bills auction, conducted a day earlier due to a shortened trading week will have a total an amount of Rs.25.5 billion on offer consisting of Rs.11.5 billion on the 91 day, Rs.9.5 billion on the 182 day and Rs.4.5 billion on the 364 day maturities. 

At last week’s auction, weighted averages on all three maturities increased to 9.22%, 10.12% and 10.55% respectively.

In money markets, the OMO department of Central Bank was seen infusing an amount of Rs.38.00 billion at a weighted average rate of 8.48% by way of an overnight reverse repo auction as the net deficit in the market stood at Rs.40.88 billion yesterday. The overnight call money and repo rates averaged at 8.48% and 9.14% respectively.

Rupee dips   

The downward trend in the USD/LKR rate continued as active two weeks and one month forward contracts were seen depreciating further yesterday to lows of Rs.152.55/65 and Rs.152.95/15 respectively against its previous day’s closing levels of Rs.151.80/10 and Rs.152.60/90 on the back of continued importer demand.  The total USD/LKR traded volume for 17February was $ 24.54 million.  Some of the forward USD/LKR rates that prevailed in the market: three months were 155.00/40 and six months – 157.30/60.