Weekly averages increase for 4th consecutive week

By Wealth Trust Securities

In contrast to the Primary Treasury bond auctions, all three weighted averages at yesterday’s weekly Treasury bill auction were seen increasing for a fourth consecutive week. The auction which had on offer a 16-week low volume of Rs. 11.5 billion succeeded in accepting only an amount of Rs. 8.5 billion. The 91-day bill weighted average increased the most by 07 basis points to 8.72% while the 182 day and 364 day bills increased by 02 and 03 basis points respectively to 9.63% and 10.17%. 

In secondary bond markets, activity continued to be dull with a limited amount of movement seen on the two 2018 maturities (i.e. 01.02.18 and 01.04.18) and the two 2021 maturities (i.e. 01.03.21 and 15.10.21) within the range of 10.70% to 10.90% and 11.95% to 12.10% respectively.

In money markets, the overnight call money and repo rates decreased marginally to average 8.41% and 8.63% respectively as the net surplus liquidity stood at Rs. 34.92 billion. The Open Market Operations (OMO) Department of the Central Bank drained out an amount of Rs. 26.47 billion on an overnight basis at a weighted average of 7.43% by way of a repo auction. 

Rupee remains mostly unchanged  

In Forex markets yesterday, the one-week forward contract remained mostly unchanged to close the day at Rs. 150.00/15 as activity moderated.  

The total USD/LKR traded volume for 27 November 2016 was $ 46.90 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month - 150.70/75; three months - 152.15/40 and six months - 154.50/75.