Weekly averages remain steady for the first time in 7 weeks

Thursday, 29 January 2015 00:33 - - {{hitsCtrl.values.hits}}

Secondary market bond yields continue to decline By Wealth Trust Securities All three weighted averages at yesterday’s weekly Treasury bill auction remained steady devoid of a movement up or down for the first time in seven weeks to record 5.80%, 5.90% and 6.05% respectively on the 91 day, 182 day and 364 day maturities. The total accepted amount was Rs 2.67 billion above the total offered amount of Rs 10 billion with the 91 day bill representing 45% of this volume.

In secondary bond markets, continued buying interest across the yield curve saw yields decline for a second consecutive day with the liquid maturities of 15.05.2017, the two 2018’s (01.04.2018 & 15.08.2018), the 01.05.2021 and the 01.07.2022 hit intraday lows of 6.88%, 7.05% each, 7.50% and 7.57% respectively against its previous day’s closing levels of 7.92/00, 7.06/10, 7.11/15, 7.50/55 and 7.65/68. However, profit-taking at these levels subsequent to the release of the auction results curtailed any further downward movement. In secondary bill markets, demand for the 91 day and 182 day maturities saw it close the day at levels of 5.70/80 and 5.85/90 post-auction. In money markets, overnight call money and repo rates remained mostly unchanged yesterday to average 5.90% and 5.21% respectively as surplus liquidity stood at Rs. 13.35 billion. The Open Market Operations (OMO) department refrained from conducting any auctions for a third consecutive day. Two-way quotes widen further in Rupee markets The rupee on spot next contracts (five day forwards) was seen closing the day at a wide range Rs. 133.00/50 against its previous day’s closing of Rs 133.00/30. The total USD/LKR traded volume for 27 January 2015 was $ 70.80 million. Some of the forward USD/LKR rates that prevailed in the market were one month - 133.60; three months -134.70 and six months - 136.00