Treasury bill auction volume drops to 36 week low

The total offered volume for the weekly Treasury bill auction to be held today was at Rs. 9 billion, a figure last witnessed at the end of last year. Rs. 2 billion, Rs. 4 billion and Rs. 3 billion is been offered on the 91 day, 182 day and 364 day maturities respectively. At last week’s auction weighted averages increased by three basis points (bp) on the 91 day maturity to 11.44% and 5 bp each on the 182 day and 364 day maturities to 13.12% & 13.36% respectively.

In line with this and the reduction of placement rates on Treasury bonds, secondary market yields dipped across the board yesterday with the three year maturity reflecting the most amount of activity as its yield hit an intraday low of 13.92%. Similarly a limited amount of activity was witnessed on the 18 ¼ month, four year, five year and six year bonds at intraday lows of 13.76%, 14.19%, 14.27% and 14.43% respectively. Given below are the closing, secondary market yields for the most frequently traded maturities.

Meanwhile in money markets surplus liquidity increased yesterday for a second consecutive day to Rs. 4.5 billion as call money and repo rates remained mostly unchanged at averages of 10.57% and 9.61% respectively. Furthermore Central Bank mopped up an amount of Rs. 4 billion by way of a repo auction at a weighted average of 9.42% through its Open Market Operations (OMO).

The dollar/rupee rate remained unchanged at levels of Rs. 132.25 yesterday despite demand for contracts value cash (11/9/12) and tom (12/9/12). Furthermore the total USD/Rs. volume for 10/09/12 was at US $ 33.37 million. Given below are some forward dollar rates that prevailed in the market, one month – 133.60; three months- 136.20 and six months – 139.65. (Source: Courtesy Wealth Trust Securities)