Downward trend in weekly averages continues

By Wealth Trust Securities

The decreasing trend in weighted averages witnessed over the previous four weeks continued at yesterday’s weekly Treasury bill auction as the weighted average on the 364 day bill decreased by six basis points to 6.94%. 

All bids for the 182 day bill were rejected for the first time in eight weeks while the 91 day bill was not on offer, leading to only an amount of Rs.5.7 billion been accepted against a total offered amount of Rs.20 billion. The bids on the 182 day bill were rejected due to high yields been submitted according to market sources. 

Meanwhile activity in secondary bond markets remained moderate yesterday with a limited amount of activity witnessed on the maturities of 15 September 2019, 1 May 2020, 1 August 2021 and 1 January 2024 within the range of 8.48% to 8.52%, 8.61% to 8.63%, 8.82% to 8.84% and 9.20% to 9.25% respectively. 

In secondary market bills, durations centering the 182 day bill were seen changing hands within the range of 6.40% to 6.50% while the 364 day bill was quoted at 6.80/90. 

In money markets, overnight call money and repo rates remained mostly unchanged to average 6.31% and 6.07% respectively as surplus liquidity remained high at Rs.113.21 billion.

 

Rupee remains mostly unchanged

The USD/LKR rate remained mostly unchanged to close the day at Rs.141.95/00 yesterday as markets were at equilibrium. The total USD/LKR traded volume for 9 November was $ 87.75 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month – 142.30/40; three months – 143.25/35 and six months – 144.50/60.