Treasury bond weighted averages spike

Auction draws over 

Rs.77 b in successful bids

By Wealth Trust Securities

The weighted averages at yesterday’s Treasury bond auctions were seen spiking to levels last seen in August 2012 with the 04.01 year maturity of 01.05.2020, the 8.11 year maturity of 15.03.2025, the 10.02 year maturity of 01.06.2026 and the 14.01 year maturity of 15.05.2030 recording weighted averages of 12.78%, 13.80%, 13.93% and 14.23% respectively against its previous weighted averages of 11.87%, 11.05%, 11.14% and 11.66% for similar tenure maturities. The four auctions was seen drawing Rs.77.73 billion in successful bids against its total offered amount of Rs.40 billion. This was ahead of an Rs.82.5 billion Treasury bond maturity due on 1 April.

Activity in secondary bond markets continued to remain dull with a limited amount of trades taking place on the 1-1-24 and 15-3-25 maturities at levels of 12.95% to 13.05% and 13.65% to 13.75% respectively. Given below are the details of the auction and the secondary market yields for the most frequently traded maturities,

In money markets, Central Banks Standing Lending Facility Rate (SLFR) window was accessed for a larger amount of Rs.20.21 billion yesterday as market net deficit increased to Rs.7.23 billion. Call money and repo rates remained steady to average 8.03% and 7.98% respectively.

Downward trend in rupee continues  

The USD/LKR rate on active one week forward contracts reflected a slide of approximately Rs.0.75 yesterday to close the day at Rs.149.90/10. The total USD/LKR traded volume for 28 March  was $ 133.56 million. Some of the forward USD/LKR rates that prevailed in the market were One Month - 149.60/00; Three Months - 151.30/50 and Six Months - 153.60/90.