Bond market at standstill ahead of weekly bill auction

By Wealth 

Trust Securities 

The secondary bond market was at a complete standstill yesterday, ahead of the weekly Treasury bill auction to be held today, where a total amount of Rs. 29.5 billion will be on offer consisting of Rs. 7.5 billion of the 91-day maturity, Rs. 15 billion of the 182-day maturity and a further Rs. 7 billion of the 364 day maturity.

At last week’s auction, the weighted average of the 182-day maturity decreased by two basis points to 10.40% while the weighted average of the 91-day and 364-day maturities remained unchanged at 9.62% and 10.73%. In the secondary bill market, November 2017 and May 2018 bills were seen quoted at levels of 10.35/40 and 10.50/65 respectively.

The total secondary market Treasury bond transacted volume for 29 May 2017 was Rs. 4.52 billion.

In money markets, the overnight call money and repo rates remained mostly unchanged to average 8.73% and 8.80% as the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka drained out an amount of Rs. 5.41 billion on an overnight basis at a weighted average of 7.28% by way of a repo auction. The net surplus liquidity in the system increased further to Rs. 10.48 billion. 

Rupee 

remains stable

The USD/LKR rate on spot contracts remained steady for a third consecutive day to close the day at Rs. 152.90/00 yesterday.

The total USD/LKR traded volume for 29 May 2017 was $ 24.00 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 154.05/15; three months - 156.05/20 and six months - 159.05/15.