Downward trend in weekly averages persists

Tuesday, 31 March 2015 23:13 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities The weighted averages at yesterday’s weekly Treasury Bills auction dipped for a fourth consecutive week with its total accepted amount exceeding its total offered amount for a fifth consecutive week.

Market appetite for the 364 day Bill continued at the auction, as it represented 57.37% of the total accepted amount of Rs. 21.49 billion against its initial total offered amount of Rs. 19 b. It was the 91-day Bill which reflected the sharpest decline of five basis points (bp) to 6.55% closely followed by the 364-day Bill by four bp to 6.76% and the 91-day Bill by two bp to 6.68%. Driven by point-to-point inflation dipping to an all-time low and the weekly auction, secondary market Bond yields were seen dipping marginally yesterday. Activity centred on the liquid maturities of 1 June 2018, 15 September 2019, 1 June 2020 and 1 September 2023 as its yields were seen dipping to intraday lows of 8.40%, 8.75%, 8.98% and 9.70% respectively in morning hours of trading. However, profit taking at these levels curtailed any further downward movement. In money markets, overnight call money and repo rates remained steady to average 6.64% and 6.40% respectively as surplus liquidity stood at a high of Rs. 71.05 b yesterday. Rupee continues stability In Forex markets, the rupee on the two-week forward contract remained mostly unchanged to close the day at Rs. 133.75/80 yesterday. The total USD/LKR traded volume for 30 March was at $ 165.25 million. Some of the forward USD/LKR rates that prevailed in the market: one month – 134.05; three months – 135.10; and six months – 136.70