Weekly weighted averages steady for a third consecutive week

Thursday, 12 September 2013 00:00 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The total accepted amount at yesterday’s weekly Treasury bill auction was Rs. 1.3 billion higher than its last week’s total accepted amount of Rs. 2.7 b as weighted averages (WAvg) remained steady on the 91 day and 182 day bills at 8.61% and 9.64% respectively while the 364 day reflected an increase of one bp to 10.57%. Meanwhile in secondary bond markets, yields closed the day steady yesterday mainly on the liquid two five-year maturities (i.e. 1 April 2018 and 15 August 2018) at levels of 11.97/99 and 12.02/05 respectively subsequent to hitting intraday lows of 11.95% and 12% prior to the release of the auction results and highs of 11.98% and 12.03% post auction. Furthermore, considerable volumes of two year maturities were seen changing hands within the range of 11.30% to 11.36% as well while in secondary market bills, January 2014 bills continued to be quoted within the range of 9.90% to 10.10%, July 2014 at levels of 10.50% to 10.55% and August 2014 at 10.55% to 10.65%. The Open market Operations (OMO) department of Central Bank was seen mopping up an amount of Rs. 6 b on an overnight basis by way of a Repo auction at a WAvg of 7.14% yesterday while a further Rs. 1.2 b was mopped up for a period of seven days at a WAvg of 7.97% as well. In addition, an amount of Rs. 8.53 b was seen been deposited at CBSL’s Repo window of 7% which in turn saw overnight call money and repo rates remain steady to average 8.56% and 8.10% respectively as surplus liquidity in money markets increased marginally to Rs. 15.73 b. Rupee gains to a two-week high The USD/LKR rate on spot contrast became active once again yesterday, as it was seen appreciating as much as 75 cents to a two week high of Rs. 132.20. Export conversions during the early part of the day were seen as the main reason behind this. However importer demand at these levels saw the green back gain some of its lost ground to close the day at levels of Rs. 132.50/60. The total USD/LKR traded volume for the previous day (10 September 2013) stood at US$ 27.00 million. Some of the forward dollar rates that prevailed in the market were one month – 133.48; three months – 135.30; and six months – 137.85.