Weekly weighted averages increase once again

By Wealth Trust Securities

The weekly weighted averages were seen increasing once again at its auction held yesterday reversing a decrease witnessed the previous week. 

The 182 day bill recorded the sharpest increase of 09 basis points 9.56% closely followed by the 364 day bill by four basis points to 10.14%. The weighted average on the 91 day maturity stood steadily at 8.60%. Interestingly only an amount of Rs. 10.43 billion was accepted in total against its total offered amount of Rs. 28 billion.

In secondary bond markets, the upward trend in yields was seen continuing yesterday as well with the liquid ten year maturity of 01.08.2026 hitting a two months high of 12.16%. In addition the maturities of 01.03.21, 01.10.22 and 01.09.23 were also seen increasing to two month highs of 11.83%, 12.01% and 12.11% respectively against its previous day’s closing levels of 11.72/75, 11.80/90 and 11.85/00 on back of the surprise outcome of the US presidential elections. 

In money markets, the overnight repo rate increased marginally yesterday to average 8.74% as the net deficit in the system increased to Rs. 43.81 billion. The Open Market Operations (OMO) Department of the Central Bank of Sri Lanka injected an amount of Rs.43.00 billion on an overnight basis by way of a Reverse Repo auction at a W. Avg of 8.50%. The overnight call money rate stood at 8.44%.

Rupee remains mostly unchanged    

 The USD/LKR rate on the one week forward contract was seen closing the day mostly unchanged at Rs. 148.10/20 while spot next contracts were quoted at Rs. 147.85/95.

 The total USD/LKR traded volume for the 8 November 2016 was $ 59.23 million.

 Some of the forward USD/LKR rates that prevailed in the market were one month - 148.75/85; three months - 150.55/65 and six months - 153.10/20