Weekly averages decrease to over nineteen week lows

By Wealth Trust Securities

The weighted averages on the 182 day and 364 day maturities were seen continuing its declining trend to record a 19-week low of 10.23% and a 23-week low of 10.39% respectively. 

This translated to a drop of three basis points on the 182 day bill and 06 basis points on the 364 day bill while the 91 day bill weighted average remained steady at 9.60% for a sixth consecutive week. 

The 182 day bill continued to dominate the auction as it represented 50.9% of the total accepted amount of Rs.29.4 billion against its total offered amount of Rs.29.5 Billion. Furthermore, the bid to offer ratio stood at an 11 week high of 2.99:1 as well.

In the secondary bond market, yields were seen decreasing marginally yesterday mainly on the liquid maturities of 15.12.2021, 01.08.2024 and 01.08.2026 to intraday lows of 11.06%, 11.25% and 11.27% respectively from its opening highs of 11.13%, 11.27% and 11.30. In addition, activity was witnessed on the 15.11.2018 and 15.01.2019 maturities as well within the range of 10.40% to 10.45%.

The total secondary market Treasury bond transacted volume for 11 July was Rs. 24.54 billion.

In money markets, the overnight call money and repo rates averaged at 8.75% and 8.83% respectively as the OMO (Open Market Operations) Department of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 16 billion on an overnight basis by way of a Reverse Repo auction at a weighted average of 8.75% yesterday. The net liquidity shortage decreased to Rs. 14.25 billion.

Rupee remains 

mostly unchanged  

In the Forex market, the USD/LKR rates on spot contracts remained mostly unchanged for a second consecutive day to close at Rs.153.71/74.

The total USD/LKR traded volume for 11 July was $ 102 million.

Some of forward USD/LKR rates that prevailed in the market were one month – 154.73/80; three months – 156.70/80; and six months – 159.55/75.