Treasury bill WAY increases across all maturities

Continuing from last week, the Central Bank’s borrowing costs increased across all maturities at its weekly Treasury bill auction held yesterday, according to Wealth Trust Securities.

It said the 182 day and 364 day maturities increased by five basis points (bp) to 13.07% and four bp to 13.31% respectively. Furthermore the 91 day maturity reflected an increase of four bp to 11.41% as well for the first time in three weeks.

“An amount of Rs. 1.5 billion was additionally accepted over its initial total offer amount of Rs. 17 billion,” debt market specialist Wealth Trust said.

In line with this, secondary market Treasury bond rates increased as well across the board with the five year maturity edging up by six basis points to an intraday high of 14.36%.

“Thin volumes of the 19 month bond were seen changing hands has as well at levels of 13.77%. Furthermore subsequent to the auction results, selling pressure was witnessed on secondary market Treasury bills as well,” Wealth Trust said.  Meanwhile, in money markets, surplus liquidity reflected an increase of Rs. 2.4 billion yesterday, from its previous day’s volume of Rs. 3.5 billion. Overnight call money and repo rates remained steady at levels of 10.55% and 9.56% respectively as an amount of Rs. 4.7 billion was mopped up from the system on an overnight basis at a weighted average of 9.43% through Central bank’s Open Market Operations (OMO).   Wealth Trust also said the Rupee gained on back of dollar conversions. “The rupee gained by around 25 cents yesterday to an intraday high of Rs. 132.25 on the back of exporters converting dollar proceeds, according to market sources. The USD/LKR opened at a low of Rs. 132.50 in early hours of trading and closed the day at a price of Rs. 132.30/132.35,” it said.

Some forward dollar rates that prevailed in the market were one month – 133.48; three months – 135.95 and six months – 139.43.