Mixed fortunes at the weekly primary auction

Thursday, 11 August 2016 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weekly Treasury bill auction conducted yesterday reflected mixed fortunes, as the weighted averages on the 91 day and 182 day maturities were seen increasing by 02 basis points each to 9.01% and 9.92% respectively while the weighted average on the 364 day decreased by one basis point to 10.72%. Interestingly, the accepted amount on the 364 day bill was 197% above its offered amount of Rs.10 billion while the overall accepted amount exceeded the total offered amount of Rs.25.5 billion by Rs.2.6 billion.

In the secondary bond market, overall yields remained mostly unchanged expect for the eight year maturity of 01.08.2024, which saw its yield dip to an intraday low of 12.17% against its previous day’s closing levels of 12.22/26. In the secondary bill market, the latest 182 day maturity was traded at a low of 9.80%, subsequent to the auction.

Meanwhile in money markets, overnight call money and repo rates remained steady to average 8.40% and 8.50% respectively as the net liquidity shortfall stood at Rs.39.52 billion yesterday. The Open Market Operations (OMO) Department of Central Bank injected an amount of Rs.40.00 billion at a weighted average of 8.32% on an overnight basis.

Rupee remains steady

The USD/LKR rate on the active one week forward contract remained steady to close the day at Rs.145.70/85 yesterday. The total USD/LKR traded volume for the 08th of August 2016 was US $ 59.80 million.

Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 146.40/50; 3 Months - 148.15/25 and 6 Months - 150.40/50.