Weekly averages remain solid for fourth consecutive week

Wednesday, 18 September 2013 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities All three weighted averages (WAvg) at the weekly Treasury bill auction remained steady yesterday for a fourth consecutive week with the total accepted amount recording only Rs.2.4 billion, the lowest since 29th February 2012 while the total bids received reflected the lowest amount since December 2008.

The 91 day, 182 day and 364 day maturities recorded WAvg’s of 8.61%, 9.64% and 10.57% respectively while in secondary markets; maturities nearing the 364 day bill were seen in demand subsequent to the auction to be quoted at levels of 11.53/55, July 2014 bills at levels of 11.52/53 and June 2014 bills at 11.48/50. In secondary bond markets, the liquid two five year maturities (i.e. 01.04.2018 & 15.08.18) saw its yields edge up yesterday to intraday highs of 11.94% and 11.95% respectively prior to the announcement of the auction results. However, subsequent to the auction results buying interest at these levels saw it close the day marginally lower at levels of 11.92/94 and 11.93/97. On the contrary, yields on the liquid two, two year maturities (i.e. 15.03.2015 and 15.07.15) continued to dip as it was seen hitting intraday lows of 11.13% and 11.18% respectively against its opening levels of 11.20% and 11.25%.

Meanwhile in money markets, Central Bank was seen mopping up an amount of Rs 7 Bn on an overnight basis by way of a Repo auction at a WAvg of 7.14% while a further Rs 1.6 Bn was mopped up for a period of 7 days at a WAvg of 7.97% as well. In addition, an amount of Rs 5.74 Bn was seen been deposited at CBSL’s Repo window of 7.00%. This is turn kept overnight call money and repo rates steady to average 8.51% and 8.12% respectively as surplus liquidity in money markets decreased marginally to Rs 14.34 Bn.

Rupee remains steady on spot contracts (SUBHEAD) In Forex markets, the USD/LKR rate on cash, tom and spot contrasts remained steady yesterday while activity was seen shifting once again towards spot next contracts as it was seen closing the day at marginally lower at levels of 132.38/40 in comparison to its previous day’s closing of 132.30/35 The total USD/LKR traded volume for the previous day (16-09-13) stood at US $ 34.85 million.