Weekly averages remain unchanged for first time in 10 weeks

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction were seen reversing its downward trend witnessed over the previous nine weeks to remain steady at 9.60%, 10.29% and 10.47% respectively as its total accepted amount dipped to a 14-week low of Rs.5.4 billion against its total offered amount of Rs.29.5 billion. Furthermore, the bid to offer ratio was seen dipping to a 14-week low of 1.58:1 as well. 

Activity in the secondary bond market picked up once again yesterday as yields dipped across the yield curve. Foreign and local buying interest on the two 2021s (01.08.21 and 15.12.21), 15.05.2023, 01.08.2024 and 01.08.2026 saw its yields dip to intraday lows of 11.32%, 11.33%, 11.40%, 11.45% and 11.52% respectively against its previous day’s closing levels of 11.35/43, 11.38/45, 11.45/55, 11.50/60 and 11.60/68. 

The total secondary market Treasury bond transacted volume for 27 June was Rs.3.35 billion.

Meanwhile in money markets, the injection of Rs.41.15 billion on an overnight basis at a weighted average rate of 8.74% by the Open Market Operations (OMO) department of Central Bank saw overnight call money and repo rates averaging at 8.75% and 8.90% respectively yesterday.

Rupee 

depreciates further   

In the forex market, continued importer demand saw the USD/LKR rate on spot contracts depreciating further to close the day at Rs.153.43/50 in comparison to the previous day’s closing levels of Rs.153.32/37.

The total USD/LKR traded volume for 27 June was $ 87.10 million. 

Given are some forward USD/LKR rates that prevailed in the market: one month - 154.45/55; three months – 156.50/60; six months – 159.35/50.