Weekly weighted averages continue decreasing trend

A further Rs. 15 b on offer through two bond auctions

By Wealth Trust Securities

The weighted averages at yesterday’s weekly Treasury bill auction were seen continuing its decreasing trend for a second consecutive week, driven by high demand due to the prevailing positive sentiment in the market. The 364 day bill reflected the sharpest decline of 13 basis points to 10.10% followed by the 91 day and 182 day bills by 02 basis points and 03 basis points respectively to 8.45% and 9.54%. The total accepted amount exceeded the total offered amount by Rs. 8.5 billion to record Rs. 31.56 billion.

In secondary bond markets, yields were seen declining in morning hours of trading. Buying interest on the liquid maturities of 01.05.20, 01.08.21, 15.03.25, 01.06.26 and 15.05.30 saw its yields dip to intraday lows of 11.32%, 11.43%, 12.00%, 12.15% and 12.43% respectively. However, following the weekly auction results coupled with the announcement of a further Rs.15 billion in Treasury bond auctions, yields were seen increasing once again to highs of 11.45%, 11.50%, 12.05%, 12.25% and 12.50%.

Meanwhile in money markets, the Open Market Operations (OMO) department of Central Bank was seen infusing an amount of Rs. 40 billion at a weighted average of 7.99% by way of an overnight reverse repo auction as the net deficit stood at Rs. 42.27 billion yesterday. The overnight call money and repo rates remained mostly unchanged to average at 8.14% and 8.10% respectively. 

Rupee remains mostly unchanged

 The dollar/rupee rate remained mostly unchanged to close the day at Rs.144.90/20 yesterday on its spot next contract. The total USD/LKR traded volume for 8 April  was $ 38.00 million.  Some of the forward USD/LKR rates that prevailed in the market were 1 Month - 145.75/00; 3 Months - 147.50/90 and 6 Months - 149.80/10.