Treasury bill weighted averages remain unchanged for second consecutive week
Thursday, 4 September 2014 00:00
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By Wealth Trust Securities
The weighted averages at yesterday’s weekly Treasury bill auction remained unchanged for a second consecutive week with the total accepted amount recording Rs. 6.2 billion in comparison to its total offered amount of Rs. 8 billion.
Interestingly, the 182 day maturity dominated the auction as it represented 57% of the total accepted amount. The 182 day and 364 day maturities recorded weighted averages of 6.28% and 6.30% respectively while 91 day was not offered.
In secondary bond markets, buying interest fuelled by the constant treasury bill rates and news of a fresh $ bond to be issued by NSB, saw the yields of the liquid 1 July 2019, 1 May 2021 and 1 July 2022 maturities declining to intraday lows of 7.34%, 7.95% and 8.02% respectively.
Furthermore, yields of the two 2018 maturities (i.e. 01.04.2018 and 15.08.2018) and 01.01.2024 maturity also dipped to lows of 7.25%, 7,30% and 8.15% respectively against its previous day’s closing levels of 7.32/38, 7.30/40 and 8.22/26.
However, yields picked up subsequently, to close the day marginally higher at levels of 7.36/42, 7.95/05, 8.04/06, 7.20/30, 7.25/35 and 8.19/23 respectively due to profit taking.
Meanwhile in money markets, The total surplus amount of Rs. 48.41 b was deposited at Central Bank’s Standing Deposit Facility Rate (SDFR) of 6.50% as no auctions under its Open Market Operations (OMO) were conducted for a third consecutive day. The overnight call money and repo rates remained steady to average 6.70% and 6.52%.
Rupee remains stable
In Forex markets, the USD/LKR rate remained mostly unchanged to close the day at Rs. 130.20/23. The total USD/LKR traded volumes for 2 September stood at $ 37.25 million. Given are some forward dollar rates that prevailed in the market: 1 month – 130.64; three months – 131.29; six months – 132.24.
