Primary market rates remain mostly unchanged

By Wealth Trust Securities

The weighted averages at the weekly Treasury bill primary auction conducted yesterday, remained mostly unchanged, with the total accepted amount falling short of the offered amount for the ninth consecutive week. The weighted averages of the 91 day and 364 maturity remained steady at 8.60% and 10.10% respectively while the weighted average of the 182 day bill increased by one basis point to 9.56%. The shortfall of the accepted amount was Rs. 7.07 b against its total offered amount of Rs. 25 b with the 91 day bill representing 51.79% of this value. The total bids to offer ratio stood at 245%. 

However, in secondary bond markets, the shorter tenure yields continued to increase on the back of foreign selling. The maturities of 01.06.2018, 15.11.2018 and 15.09.19 were seen hitting intraday highs of 11.30%, 11.40% and 11.88% respectively with considerable volumes changing hands. In addition the 01.08.24 maturity was traded within the range of 12.49% to 12.51%. 

Meanwhile in money markets, the overnight call money and repo rates remained mostly unchanged to average 8.40% and 8.58% respectively as the net deficit in the market stood at Rs. 11.37 b. The attempt to infuse liquidity on a permanent basis by the Open Market Operations (OMO) Department of the Central Bank through outright purchase auctions was unsuccessful once again with all bids being rejected.

Rupee remains stable 

The USD/LKR rate on spot contracts remained steady to close the day at Rs. 148.85/95.  

The total USD/LKR traded volume for 6 December 2016 was $ 43.64 m. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 149.55/65; three months - 151.05/10 and six months - 153.35/50