Weekly averages increase for the first time in 9 weeks

• Secondary market bond yields increase in two-way quotes

By Wealth Trust Securities

The decreasing trend in the weekly Treasury Bill weighted averages witnessed over the previous eight weeks was seen reversing at yesterday’s auction, as the weighted averages increased across all three maturities. 

The 364 day bill reflected the sharpest increase of six basis points to 6.92% closely followed by the 182 day and 91 day bills by five and four basis points respectively to 6.35% and 6.10%. Interestingly, the accepted amount on the 364 day bill was seen hitting a 31 week high of Rs.8.97 billion while a total amount of Rs.24.8 billion was attracted against a total offered amount of Rs.20 billion. 

In secondary market bonds, yields were seen closing the day higher in two way quotes on back of the outcome of the weekly bill auction. A very limited amount of activity was witnessed on the 15 September 2019 and 1 May 2020 maturities within the range of 8.68% to 8.72% and 8.83% to 8.87% respectively. Meanwhile in secondary market bills, the 91 day bill was quotes at levels of 6.05/20 and the 364 day bill was at 6.90/00 post auction.

In money markets, the overnight call money and repo rates remained steady to average 6.31% and 5.91% respectively as surplus liquidity in the market stood at Rs.89.3 billion yesterday.

Rupee remains mostly unchanged 

 The USD/LKR rate on spot contracts remained mostly unchanged to close the day at Rs.143.18/25 as markets were at equilibrium. The total USD/LKR traded volume for 8 December was $ 57.60 million. 

Some of the forward USD/LKR rates that prevailed in the market were one month – 143.60/70; three months – 144.35/45; and six months – 145.55/65.