T-bill weighted averages edge up for first time during the year

Weighted averages on all three maturities yesterday increased for the first time in 13 weeks since the Central Bank cut its policy rates on 12 December 2012.

Wealth Trust Securities said at yesterday’s auction the 91-day and 182-day bills reflected an increase of two basis points (bp) each to 9.11% and 10.10% respectively while the 364-day bill edged up by four bp to 11.14%.



The total accepted amount at the auction was Rs 7.9 billion higher than the initial offered amount of Rs. 20 billion as the 364-day bill reflected a proportion of 87% of this volume, satisfying markets continued appetite for this duration.

Subsequent to the release of the auction results, selling pressure was witnessed in secondary bond markets with the two liquid five-year maturities (i.e. 15 August 2018 and 1 April 2018) hitting an intraday day high of 11.22%, while the four-year maturity was seen changing hands within the range of 11.20% to 11.25%. Furthermore the 364-day bill was seen being quoted at levels of 11.14%-11.17% in secondary markets as well.

Meanwhile, in money markets, Wealth Trust said the high surplus liquidity of Rs. 38.46 billion saw overnight call money and repo rates remain steady to average 9.37% and 8.56% respectively. The Open Market Operations (OMO) department of Central Bank continued to drain out an amount of Rs. 36.54 billion at a weighted average of 8.35% by way of an overnight Repo auction.

After a lap of 13 consecutive days, the rupee appreciated marginally to close the day at Rs. 127.23 yesterday on the back of selling interest on short dated forward dollar contracts. The total USD/LKR volume for the previous day (5 March 2013) was at US$ 42.80 million.