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Friday, 12 May 2017 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The downward trend in primary market rates continued at Tuesday’s Treasury bond auctions as well, with a total amount of Rs. 90.18 billion been accepted against a total offered amount of Rs. 94 billion. The weighted averages on the 1.08 year maturity of 15.01.2019, the 4.07 year maturity of 15.12.2021 and the 8.03 year maturity of 01.08.2025 decreased by 14, 13 and 37 basis points respectively to 11.07%, 11.42% and 11.50% in comparison to its previous weighted averages recorded on 27 April while the weighted average on the new six year maturity of 15.05.2023 stood at 11.49%.
In the secondary bond market on Tuesday, yields decreased marginally leading to the bond auctions mainly on the liquid maturities of 15.01.19, 15.12.21, 01.08.24 and 01.08.26 to hit intraday lows of 10.85%, 11.29%, 11.50%, and 11.55% against its previous day’s closing levels of 10.85/00, 11.30/35, 11.52/60 and 11.60/70.
Meanwhile, the Central Bank of Sri Lanka was seen keeping its policy rates unchanged at 7.25% and 8.75% at its policy meeting held Tuesday.
The total secondary market Treasury bond Transacted volume for 8 May was Rs. 14.8 billion.
Meanwhile in money markets, the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 12 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 8.75% as the net liquidity shortage stood at Rs. 12.86 billion on Tuesday. This intern saw the overnight call money and repo rates averaging at 8.75% and 8.81% respectively.
In Forex markets, the USD/LKR rate on spot next as well as two weeks forward contracts appreciated once again to close the day at Rs. 152.65/70 and Rs. 153.00/10 against its previous day’s closing levels of Rs. 152.80/85 and Rs. 153.13/20 on the back of export conversions outweighing importer demand.
The total USD/LKR traded volume for 8 May was $ 81.75 million.
Some of the forward USD/LKR rates that prevailed in the market were one month – 153.65/75; three months – 155.45/50 and six months – 158.20/30.
