Weekly Treasury bill auction rejected for first time in 11 months

Thursday, 10 September 2015 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

All bids at yesterday’s weekly Treasury bill primary auction were rejected for the first time in 11 months, because, according to market sources, the rates submitted were too high.

Subsequent to the outcome of the auction results, the increasing trend in secondary market bond yields witnessed during the morning hours of trading, reversed, with yields dipping considerably.

Activity continued to remain high with the liquid maturities of 01.07.19, 01.05.20, 01.08.21, 01.09.23 and 01.06.26 changing hands at daily highs of 9.45%, 9.65%, 9.90%, 10.25%, 10.45% and lows of 9.25%, 9.45%, 9.75%, 10.00% and 10.35%.

Furthermore, a limited amount of activity was also witnessed on the maturities of 15.09.19 and 01.08.25 within a range of 9.35% to 9.55% and 10.20% to 10.35%.

In money markets, overnight call money and repo rates remained steady to average 6.34% and 6.30% respectively as surplus liquidity remained high at Rs. 59.93 billion.

Rupee depreciates further

Meanwhile in Forex markets, the USD/LKR rate on spot contracts depreciated further to close the day at Rs. 138.80/90 against its previous day’s closing of Rs 138.30/45. The total USD/LKR traded volume for 8 September 2015 was $ 81.25 million. Some of the forward USD/LKR rates that prevailed in the market were one month - 139.50/65; three months - 140.55/80 and six months - 142.20/50.