Weekly averages continue to increase gradually

By Wealth Trust Securities

The weekly weighted averages at the Treasury bill auction held yesterday continued to increase, with the 182 and 364 day bill maturities increasing by eight basis points each to 10.27% and 10.66% and the 91 day bill increasing by 6 basis points to 9.38%. 

The total accepted amount dipped to an 11-week low of Rs. 6.7 billion against the total offered amount of Rs. 24 billion.

Meanwhile, activity in the secondary bond markets continues to be moderate with limited trades taking place of the 15.09.19 maturity at levels of 12.09%-12.12%.

In money markets, overnight call money and repo averaged 8.49% and 8.62% respectively as the OMO Department of the Central Bank of Sri Lanka was seen infusing an amount of Rs. 24.00 billion at a weighted average of 8.48% by way of an overnight reverse repo auction. The net deficit in the system stood at Rs. 36.89 billion.

Rupee continues appreciating trend

The rupee on active two week and one month forward contracts appreciated further yesterday to close the day at levels of Rs. 151.65/80 and Rs. 152.25/40 respectively against its previous day’s closing levels of Rs. 151.70/90 and Rs. 152.25/60 on the back of continued export conversions.

The total USD/LKR traded volume for 27 February 2017 was $ 91.64 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 154.50/65 and six months - 157.60/80.