Weekly averages continue increasing for third consecutive week

• Liquidity increase to over six-week high

By Wealth Trust Securities

The weekly weighted averages (W.Avgs) continued their increasing trend for a third consecutive week with the 91-day bill reflecting the sharpest increase of 08 basis points to 6.22% against its previous week’s W. Avg. 

This was closely followed by the 182-day bill increasing by 05 bp to 6.31% and the 364-day bill by 03 bp to 6.31% as well with the 91-day bill continuing to dominate the auction as it represented 65% of the total accepted of Rs. 19.92 billion. 

In secondary bond markets, buying interest in the morning hours of trading saw yields on the 01.06.2018, 01.08.2021, 15.10.2021 and 01.09.2023 maturities dip to intraday lows of 8.00%, 9.10%, 9.15% and 9.55% respectively. 

However, following the outcome of the auction, yields were seen increasing once again to hit intraday highs of 8.05%, 9.15%, 9.25% and 9.70% as volumes changing hands increased. 

Meanwhile, in money markets, liquidity was seen increasing to over a six-week high to record Rs. 101.26 billion yesterday, following a Rs. 86.4-billion bond maturity. Overnight call money and Repo remained steady to average 6.14% and 5.91% respectively.

Rupee steady for third consecutive day

The dollar/rupee rate on spot contracts remained unchanged for a third consecutive day at Rs. 133.80. The total USD/LKR traded volume for the previous day (14-07-15) stood at $ 53.05 million. 

Some of the forward dollar rates that prevailed in the market were 1 month - 134.40/55; 3 months - 135.45/55 and 6 months - 137.00/15.