Weekly averages resume downward trend

The Central Bank of Sri Lanka’s (CBSL) Treasury bill holding was seen dipping drastically once again yesterday to Rs. 171.24 billion against a high of Rs. 290.14 billion recorded on 3 July. 

Furthermore, the weighted averages at yesterday’s weekly Treasury bill auction was seen resuming its downward trend following a lapse of one week as the total accepted amount at the auction stood at Rs. 30.87 billion against its total offered amount of Rs. 31.00 billion. 

The weighted averages on the 182-day and 364-day maturities decreased by three and two basis points respectively to 10.26% and 10.45% while the 91 day maturity stood steady for a fifth consecutive week at 9.60%. 

In the secondary bond market yesterday, yields were seen closing the day broadly steady subsequent to a marginal dip on the short end of the curve in the morning hours of trading. The liquid two 2021 maturities (i.e. 01.08.21 and 15.12.21) saw its yields dip to an intraday lows of 11.12% each against an opening high of 11.15% each. In addition, the 01.08.24, 01.06.26 and 01.08.26 maturities continued to change hands within the range of 11.30% to 11.35% as well. Meanwhile, in the secondary bill market, the 182-day and 364-day maturities were quoted at levels of 10.15/25 and 10.35/45 respectively, post-auction.

The total secondary market Treasury bond transacted volume for 4 July 2017 was Rs. 8.99 billion.

Meanwhile, in money markets, the Open Market Operations (OMO) Department of the Central Bank of Sri Lanka was seen injecting an amount of Rs. 3.00 billion on an overnight basis by way of a Reverse Repo auction at a weighted average rate of 8.75% as liquidity in the system stood at a deficit of 3.52 billion yesterday. The overnight call money and repo rates averaged 8.75% and 8.77% respectively.

Rupee depreciates further  

The USD/LKR rate on spot contracts depreciated further yesterday to close the day at Rs. 153.68/75 against its previous day’s closing levels of Rs. 153.65/70, on the back of continued importer demand. The total USD/LKR traded volume for the 04th of July 2017 was $ 25.65 million.