Weighted averages at the weekly bill auction continue to edge up

By Wealth Trust Securities

The weighted averages at yesterday’s bill auction continued to edge up for the seventh consecutive week, with the 182 day bill increasing by 16 basis points to a three-year eight-month high of 10.05% and the 91 day and 364 day maturities increasing by one basis point and six basis points respectively to 8.98% and 10.37%. A total amount of Rs. 27.8 billion was accepted against an offered amount of Rs. 28 billion. 

However, in the secondary bond market, continued buying interest resulted in yields decreasing further. Activity, consisting of the 01.08.21, 15.12.21 and 01.08.2024 maturities traded at levels of 12.20%, 12.25% and 12.36% to 12.40% respectively, while on the longer end of the yield curve  the 15.05.30 continued to change hands at levels of 12.60%.

In money markets, the OMO Department of the Central Bank of Sri Lanka drained out an amount of Rs. 90.07 billion on an overnight basis by way of a Repo auction at a weighted average rate of 7.52% with the net surplus liquidity standing at Rs. 96.45 billion. The overnight call money and repo rates averaged 8.39% and 8.51% respectively.

Rupee depreciates 

The rupee on two weeks and one month forward contracts depreciated marginally to close the day at Rs.150.70/85 and Rs.151.20/30 in comparison to its previous day’s closing levels of Rs.150.50/60 and Rs.150.95/05.

The total USD/LKR traded volume for 17 January 2017 was $ 101.62 million.

Some of the forward USD/LKR rates that prevailed in the market were three months - 152.70/80 and six months - 154.95/05.