Weekly averages increase across the board close to one-year highs

• Primary and secondary market yields move in opposite directions

By Wealth Trust Securities As expected in line with the withdrawal of the special standing deposit facility of 5.00%, weighted average at yesterday’s weekly Treasury bill auction was seen increasing across the board close to one-year highs. The 91-day bill reflected the sharpest increase of 91 basis points (bp) to a one-year high of 6.89% closely followed by the 182-day and 364-day bills as it reflected increases of 89 bp and 86 bp to a one-year and eighth month high of 6.98% and 6.99% respectively. A total amount of Rs. 16.45 billion was accepted against its total offered amount of Rs. 15 billion. Given below are the details of the auction. In secondary bond markets yesterday, the upward trend in yields witnessed during morning hours of trading came to halt subsequent to the release of the auction results and closed the day lower on the back of fresh buying interest. The liquid maturities of the two 2018’s (01.04.2018 & 15.08.2018) and the 01.07.2022 was seen dipping to intraday lows of 7.80%, 7.85% and 8.05% respectively against its day’s highs of 8.10% each and 8.80%. Meanwhile, in secondary market bills, the 364-day bill was seen quoted at levels of 6.95/25 post auction. Given below are the closing, secondary market yields for the most frequently traded maturities. In money markets, surplus liquidity continued to remain high at Rs 26.77 billion yesterday as call money and repo rates were seen averaging 6.70% and 6.58% respectively. Rupee remains stagnant The USD/LKR rate on spot and spot next contracts continued to remain stagnant at Rs. 132.90/10 and Rs. 132.92/10 yesterday while one week forwards contracts were seen closing the day at Rs. 133.50/60. The total USD/LKR traded volume for the 2 March 2015 was at US $ 15.60 million. Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 134.15; 3 Months - 135.10 and 6 Months - 136.40.