Weekly averages edge up for a fifth consecutive week

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction increased across the board for a fifth consecutive week with the total accepted amount hitting a thirty-five (35) week high of Rs. 31.15 billion. It was the 182 day bill which reflected the highest accepted amount of Rs. 14.62 billion or 46.93% of the total accepted amount as its weighted average increased by sixteen basis points to a seventeen week high of 9.79%, closely followed by the 91 day and 364 day bills by six and five basis points respectively to 8.78% and 10.22%.

In secondary bond markets, continued foreign selling mainly on the maturities of 01.11.19, 01.08.21 and 01.07.22 saw its yields increase to daily highs of 11.80%, 12.20% and 12.30% respectively against its days opening lows of 11.70%, 12.12% and 12.19% on the back of considerable volumes changing hands. In addition, the 01.08.24 maturity was seen changing hands within the range of 12.21% to 12.25% as well. 

Meanwhile in money markets, overnight call money and repo rates decreased to average 8.36% and 8.59% respectively as net surplus liquidity stood at Rs. 103.83 billion yesterday. The OMO (Open Market Operations) department of the Central Bank was seen mopping up an amount of Rs. 56 billion on an overnight basis by way of a Repo auction at a weighted average rate of 7.41% while the attempt to drain out liquidity on a permanent basis was unsuccessful.

Rupee remains mostly unchanged

The USD/LKR rate on the spot next, one week and one month forward contracts remained mostly unchanged to close the day at Rs. 150.00/15, Rs. 150.20/30 and Rs. 150.80/95 respectively as markets were at equilibrium.

The total USD/LKR traded volume for 3 January 2017 was $ 67.24 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 152.45/55 and six months - 154.75/85.

The weighted averages at yesterday’s weekly Treasury bill auction increased across the board for a fifth consecutive week with the total accepted amount hitting a thirty-five (35) week high of Rs. 31.15 billion. It was the 182 day bill which reflected the highest accepted amount of Rs. 14.62 billion or 46.93% of the total accepted amount as its weighted average increased by sixteen basis points to a seventeen week high of 9.79%, closely followed by the 91 day and 364 day bills by six and five basis points respectively to 8.78% and 10.22%.

In secondary bond markets, continued foreign selling mainly on the maturities of 01.11.19, 01.08.21 and 01.07.22 saw its yields increase to daily highs of 11.80%, 12.20% and 12.30% respectively against its days opening lows of 11.70%, 12.12% and 12.19% on the back of considerable volumes changing hands. In addition, the 01.08.24 maturity was seen changing hands within the range of 12.21% to 12.25% as well. 

Meanwhile in money markets, overnight call money and repo rates decreased to average 8.36% and 8.59% respectively as net surplus liquidity stood at Rs. 103.83 billion yesterday. The OMO (Open Market Operations) department of the Central Bank was seen mopping up an amount of Rs. 56 billion on an overnight basis by way of a Repo auction at a weighted average rate of 7.41% while the attempt to drain out liquidity on a permanent basis was unsuccessful.

Rupee remains mostly unchanged

The USD/LKR rate on the spot next, one week and one month forward contracts remained mostly unchanged to close the day at Rs. 150.00/15, Rs. 150.20/30 and Rs. 150.80/95 respectively as markets were at equilibrium.

The total USD/LKR traded volume for 3 January 2017 was $ 67.24 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 152.45/55 and six months - 154.75/85.