Dull sentiment in bond market continues ahead of weekly bill auction

By Wealth Trust Securities 

Activity in the secondary bond market remained rather dull yesterday, ahead of today’s weekly Treasury bill auction, with limited trades of 01.04.18 and 15.12.21 maturities taking place at levels of 10.53% and 11.50% respectively.

Today’s auction will have on offer a total amount of Rs. 22.5 billion, consisting of Rs. 5 billion of the 91-day, Rs. 16.0 billion of the 182-day and Rs. 8 billion of the 364-day maturities. At last week’s auction, weighted averages decreased across the board to 9.61%, 10.35% and 10.71% respectively on the 91-, 182- and 364-day maturities reflecting decreases of one, five and two basis points.

 The total secondary market Treasury bond transacted volume for 2 June 2017 was Rs. 3.4 billion.

Meanwhile, in money markets, the Central Bank of Sri Lanka refrained from conducting any auctions under its Open Market Operations (OMO) as the net market liquidity stood at a deficit of Rs. 0.78 billion. The overnight call money and repo rates remained mostly unchanged to average 8.75% and 8.93% respectively.

 Rupee remains stable

 The USD/LKR rate on spot next contracts remained steady to close the day at Rs. 152.85/90 yesterday.

 The total USD/LKR traded volume for 2 June 2017 was $ 59.90 millizon.

 Some of the forward USD/LKR rates that prevailed in the market were one month - 153.85/95, three months - 155.95/05 and six months - 158.80/90.