Weekly averages continue to tick upwards

By Wealth Trust Securities

The weekly weighted averages continued to tick upwards at a slow pace for a fourth consecutive week. The 91 day and 364 day maturities increased by three and one basis points respectively to 9.04% and 10.75% while the weighted average on the 182 day remained steady at 9.94%. 

The auction fell short by Rs. 3.20 billion as only a total amount of Rs. 23.8 billion was accepted against its total offered amount of Rs. 27 billion. 

In the secondary bond markets yield dipped marginally yesterday on thin volumes mainly on the 01.09.23, the two 2025s and the 01.08.26 maturities to lows of 12.15%, 12.40% and 12.53% respectively against its previous day’s closings of 12.15/22, 12.42/45 and 12.52/57. 

This was ahead of today’s Treasury bond auctions, where Rs. 45 billion in total will be on offer consisting of Rs. 15 billion each on a 4.06 year maturity of 01.03.2021, a 7.11 year maturity of 01.08.2024 and a 9.11 year maturity of 01.08.2026. The previously recorded weighted averages for these maturities were 12.07%, 12.61% and 12.86% respectively.

Meanwhile, in money markets yesterday, the overnight call money and repo rates averaged 8.40% and 8.49% respectively as the net liquidity shortfall in the system reduced further to Rs. 6.70 billion. The Open Market Operations (OMO) Department of Central Bank injected an amount for Rs.15 billion at a weighted average rate of 8.41%.

Rupee remains steady  

In Forex markets, the USD/LKR rate on all three contracts (spot, spot next and one week forward) remained steady for an eighth consecutive day at Rs. 145.50/55, Rs. 145.58/62 and Rs. 145.75/80 respectively. 

The total USD/LKR traded volume for 23 August 2016 was $ 28.75 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 146.45/52; three months - 148.10/30 and six months - 150.65/10.