Treasury bill weighted averages continues upward shift

The weighted average yields of Treasury bills continued their upward shift for the fourth consecutive week at the weekly auction held yesterday.

The 364-day and 182-day maturities increased by nine basis points and four basis points respectively whilst bids for the 182-day bill were rejected for the first time in 15 months. Once again it was the 364-day maturity which drew the greatest amounts of bids with 90% or eight billion being accepted against a total auction accepted amount of Rs. 8.8 b.

Subsequent to the outcome of the auction, the secondary bill market witnessed selling pressure, with the 91-day and 364-day bills being quoted at levels of 9.30% to 9.50% and 11.38% to 11.45% respectively.

Furthermore, yields in the secondary bond market too reflected a similar trend with the yields of the two liquid five-year maturities (i.e. 15 August 2018 and 1 April 2018) quoted at intraday highs of 11.45% and 11.50% respectively.



Meanwhile in money markets, the surplus liquidity increased by Rs. 11.4 b to Rs. 24.8 b as the Central Bank mopped up an amount of Rs. 2.6 billion through its Open Market Operations at a weighted average yield of 8.35%, and a further amount of Rs. 22.1 b at the policy rate of 7.50%.

The average overnight call money and repo rates remained mostly unchanged at 9.50% and 8.62% respectively.  

The USD/LKR rate closed the day reflecting an appreciated of around 10 cents at Rs. 126.70 yesterday against its previous day’s closing level of Rs. 126.80. The total USD/LKR traded volume for the previous day (22 March 2013) stood at US$ 32.22 million.  Given are some forward dollar rates that prevailed in the market: one month – 127.92; three months – 129.86; and six months – 132.95.