Treasury bill weighted averages static for the first time in 34 weeks

The weighted averages across all three maturities at the weekly Treasury bill auction held yesterday remained flat, neither reflecting a downward or upward movement for the first time in 34 weeks. A total amount of Rs 7.3 Bn was accepted out of a total offered amount of Rs 9 Bn. Given below are the details of the auction,

In line with the outcome of the Treasury bill auction, secondary market bill and bond rates declined further yesterday as buying interest flowed into the market with volumes traded increasing as well.  The short tenure 18 months bond and the 4 year bond reflected the sharpest decline of 7 basis points (bp) each to intraday lows of 13.67% & 14.10% respectively. In addition the 5 year maturity dipped by 5 bp as well to an intraday low of 14.20% while the 3 year maturity saw activity take place within the range of 13.90% to 13.92%.

Given below are the closing, secondary market yields for the most frequently traded maturities.

Meanwhile in money markets, surplus liquidity increased for a third consecutive day to Rs 5.3 Bn yesterday as overnight call money and repo rates averaged 10.59% and 9.62% respectively. An amount of Rs 3.6 Bn was mopped up through Central Banks Open Market Operations (OMO) at a weighted average of 9.42%.

Rupee gains to a one month high

The rupee appreciated to a one month high of Rs 131.90 yesterday on the back of dollar inflows into the system and reduced import demand according to markets sources.  It opened at an intraday low of Rs 132.22 in early hours of trading as volumes exchanged were considerably higher in comparison to its previous day’s (11/09/12) total volume of US $ 39.55 million. Given below are some forward dollar rates that prevailed in the market.