Weekly averages increase for the first time in eight weeks

Reversing a downward or steady trend witnessed over the previous few weeks, the weekly Treasury bill auction weighted averages were seen increasing for the first time in eight weeks yesterday.

The 364-day bill recorded the highest increase of 08 basis points to 10.19% closely followed by the 182-day by 07 basis points and the 91-day bill 05 basis points to 9.46% and 8.60% respectively.

 A meagre amount of Rs. 4.1 billion was accepted in total against its total offered amount of Rs. 24 billion while the total bid to offer ratio stood at 1.74:1. Given below are the details of the auction. 

Activity in the secondary bond market remained moderate yesterday, with the liquid maturities of the two 2018’s (i.e. 15.10.2018 and 15.11.18), the 01.05.20 and the 01.03.21 changing hands at levels of 11.05% to 11.10% and 11.65% each.

 In secondary bills market, April and August 2017 maturities continued to change hands within the range of 9.65% to 9.70% and 10.15% to 10.35% respectively. Given below are the closing, secondary market yields for the most frequently traded maturities.

 In the money market, the overnight call money and repo rates averaged at 8.42% and 8.83% respectively as the net liquidity shortfall in the system stood at Rs. 44.26 billion. The Open Market Operations (OMO) Department of the Central Bank injected an amount of Rs. 41.00 billion on an overnight basis at a weighted average of 8.49% by way of an overnight reverse repo auction.

Rupee depreciates further

 Meanwhile in Forex markets, the active spot next contract depreciated further yesterday to close the day at Rs. 147.40/45 against its previous day’s closing level of Rs. 147.27/35 on the back of importer demand. The one week forward contracts closed at Rs. 147.50/60.The total USD/LKR traded volume for 18 October 2016 was $ 62.35 million. Given below are some forward USD/LKR rates that prevailed in the market. 

 1 Month  - 148.10/20    

3 Months - 149.90/10

6 Months -  52.20/40