Weekly weighted averages remain steady following two weeks of dips

By Wealth Trust Securities

The weekly weighted averages remained steady at their auctions held yesterday following the previous week’s steep drop. 

The total bids to offer ratio was seen dipping to an 11-week low of 2.30:1 as only a total of Rs. 13.35 billion was accepted against its total offered amount of Rs. 26 billion.

In secondary bond markets, yields were seen increasing yesterday for a third consecutive day. The liquid maturities of 01.03.21, 01.08.24, the two 2025s (i.e. 15.03.25 & 01.08.25) and the 01.08.26 saw its yields hit intraday highs of 11.09%, 11.59%, 11.66%, 11.65% and 11.70% respectively against its day’s opening lows of 11.00%, 11.54%, 11.58%, 11.62% and 11.61%. 

In addition, on the long end of the yield curve, the 15.05.30 was seen increasing to a high of 11.95% against its day’s opening low of 11.90%. In the secondary bill market, 1 September 2017 maturity was quoted at 10.43/45 post-auction.

Meanwhile, in money markets, the overnight repo rate decreased marginally to average at 8.61% as the OMO (Open Market Operations) department of Central Bank injected an amount of Rs.19.72 billion on an overnight basis at a weighted average rate of 8.48%. The overnight call money rate remained steady at 8.40%.

Rupee dips marginally

 In Forex markets yesterday, the rupee on the spot as well as one-week forward contracts lost ground marginally to close the day at Rs. 145.38/42 and Rs. 145.45/60 respectively against its previous day’s closing levels of Rs. 145.25/35 and Rs. 145.50/60 on the back of importer demand.

The total USD/LKR traded volume for 9 September 2016 was $ 68.25 million.

Some of the forward USD/LKR rates that prevailed in the market were one month - 146.15/25; three months - 147.80/90 and six months - 150.10/20.