Weekly averages hold steady for the first time in seventeen weeks

Thursday, 23 January 2014 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities Reversing a downward trend that was witnessed over the past seventeen (17) weeks, weighted averages (WAvgs) at yesterday’s weekly Treasury bill auction remained steady on the 182-day and 364-day maturities at levels of 7.02% and 7.15% respectively, while the WAvg on the 91-day bill reflected a marginal dip of 2 basis points (bp) to 6.84%. More interestingly, the total accepted amount at the auction was lower than the total offered amount for the first time in thirteen (13) weeks as well, with the 182-day bill representing the bulk of the accepted amount (63%), reversing a trend that was witnessed for the 364-day bill over the past few weeks as well. Meanwhile in secondary bond markets, yields were seen increasing for a third consecutive day fuelled by the outcome of the weekly auction, mainly on the liquid two 2018 (i.e. 01.04.2018 and 15.08.18) maturities from intraday opening lows of 9.10% and 9.15% respectively to highs of 9.30% and 9.35%. In addition, a limited amount of activity was witnessed on the 01.07.19 maturity as well within the range of 9.30% to 9.35% and on the two and a half year maturity of 01.08.2016 within the range of 8.35% to 8.50%. In secondary bill markets, the 364-day bill was seen quoted at levels of 7.15/25 and the 182-day bill at levels of 7.00/10 subsequent to the auction. In money markets, overnight call money and repo rates remained steady to average 7.40% and 6.80% respectively as overall surplus liquidity dipped to Rs. 28.24 billion yesterday, with the amount been deposited at CBSL’s Standing Deposit Facility Rate (SDFR) of 6.50% as the Open Market Operations (OMO) department refrained from conducting any auctions. Rupee dips marginally Meanwhile in Forex markets, the USD/LKR rate depreciated marginally yesterday to close the day at Rs. 130.82/85 on the back of importer demand. The total USD/LKR traded volume for the previous day (21 January 2014) stood at $ 47.24 million. Some of the forward dollar rates that prevailed in the market were 1-Month: Rs. 131.26, 3-Months: Rs. 131.94 and 6-Months: Rs. 133.14.