Weekly averages remain unchanged for first time in 8 weeks

Thursday, 4 June 2015 00:00 - - {{hitsCtrl.values.hits}}

Secondary market yields close the day steady\

By Wealth Trust

Securities Ltd

All three weighted averages (W.Avgs) at yesterday’s weekly Treasury bill auction were seen remaining unchanged for the first time in eight weeks against a downward trend witnessed previously with the total accepted amount falling short of the total offered amount for the first time in 14 weeks as well.

The 91 day, 182 day and 364 day maturities recorded weighted averages of 6.07%, 6.18% and 6.29% respectively as a total amount of Rs. 17.65 billion was accepted against its initial total offered amount of Rs. 26 billion.

Meanwhile, in secondary bond markets, yields were seen increasing in the morning hours of trading mainly on the liquid maturities of 1 June 2018, 15 September 2019, 1 August 2021 and 1 September 2023 to intraday highs of 7.62%, 7.97%, 8.36% and 8.68% respectively.

However, buying interest at these levels curtailed any further upward movement and yields were seen dipping marginally once again to close the day broadly steady against its previous trading day’s closings. In addition, buying interest on the 1 April 2018 maturity saw it change hands within the range of 7.46% to 7.49% while continued buying interest on the longer end of the curve saw the 15 May 2030, 15 March 2035 and the 1 March 2045 close the day at levels of 9.30/40, 9.50/75 and 10.60/80 respectively.

Meanwhile in money markets yesterday, overnight call money and repo rates remained steady to average at 6.10% and 5.78% respectively as surplus liquidity remained high at Rs. 95.73 billion.

Rupee continues appreciating trend

In Forex markets yesterday, the rupee on active three month forward contracts appreciated further to close the day at Rs. 135.90/40 against its previous trading day’s closing of Rs. 136.50/80 on the back of export conversions. The total USD/LKR traded volume on 1 June 2015 stood at $ 61.15 million.