Total accepted amount doubles at weekly Treasury bill auction

Tuesday, 14 January 2014 00:01 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The weighted averages (WAvgs) at yesterday’s Treasury bill auction dipped for a 17th consecutive week as its total accepted amount more than doubled its total offered amount for the first time in seven weeks. It was the 364 day bill which reflected the sharpest decline of 27 basis points (bp) to a 156 week low of 7.15% while the 91 day and 182 day bills dipped by 14 bp and 18 bp respectively to a 145 week low of 6.86% and a 172 week low of 7.02%. The doubling of the accepted amount to a total of Rs. 37 billion against its initial offered amount of Rs. 15 b was seen as curtailing the downside pressure on WAvgs according to market sources.

However, contrary to the movement in primary markets, secondary market bond yields were seen increasing yesterday subsequent to the release of the auction results reversing its opening downward trend. Once again activity surrounded the liquid two 2018 maturities (i.e. 1 April 2018 and 15 August 2018) and the 1 July 2019 maturity as it was seen hitting intraday highs of 8.72%, 8.85% and 8.90% respectively against it morning lows of 8.67%, 8.78% and 8.83%. In secondary bill markets the 364 day bill, which was seen changing hands at levels of 7.15% to 7.25% pre-auction, was quoted at levels of 6.95% to 7.05% post auction while the 182 day bill was at 6.80/90. Meanwhile in money markets, overnight call money and repo rates remained steady to average 7.40% and 6.86% respectively as overall surplus liquidity stood at Rs. 35.11 billion yesterday. An amount of Rs. 13 billion was mopped up on four day basis by way of a Repo auction at a WAvg of 6.65% while further an amount of Rs. 22.11 b was deposited at CBSL’s Standing Deposit Facility Rate of 6.50%. Rupee closes the day steady The dollar/rupee rate remained mostly unchanged within the range of Rs. 130.70-Rs. 130.75 yesterday. The total USD/LKR traded volume for the previous day (10 January 2013) stood at US $ 37.55 million. Given are some forward dollar rates that prevailed in the market: one month – 131.04; three months – 131.66; six months – 132.66.