91-day Weighted average dips for first time in six weeks

The Weighted average (WAvg) on the 91-day bill dipped by 01 basis point (bp) to 9.25% for the first time in six weeks while the WAvg on the 364-day bill remained unchanged for a third consecutive week at yesterday’s weekly Treasury bill auction.

Wealth Trust Securities said the 182-day bill was accepted for the first time in three weeks as well after two weeks of rejections.  Its WAVg was 10.25%

Once again the 364-day kept its dominance at the auction as it represented 75% (Rs. 6 billion) of the total accepted amount. Its WAvg was 11.35%. This auction drew bids worth Rs. 22 billion.

Wealth Trust said subsequent to the release of the auction results, activity in secondary market bills increased as considerable buying interest set in.

Bills with durations ranging from nine to 10 months were seen changing hands within the range of 11.10% to 11.20% while the 364-day bill closed the day at 11.25/30.

However in secondary market bonds yields were stagnant with a limited amount of activity seen on the five-year maturity at levels of 11.40% while the three-year maturity changed hands within the range of 11.25% to 11.28%.

Meanwhile in money markets, the Open Market Operations (OMO) department of Central Bank drained out an amount of Rs. 34.69 b at a weighted average of 8.35% by way of an overnight Repo auction yesterday as surplus liquidity in money markets remained high at Rs. 38.97 billion. This intern saw Overnight call money and repo rates remain steady to average 9.44% and 8.58% respectively.