Upward trend in weighted averages halt for first time in five weeks

Thursday, 4 April 2013 01:25 - - {{hitsCtrl.values.hits}}

The weighted averages at yesterday’s weekly Treasury bill auction remained unchanged for the first time in five weeks as improved market sentiment generated total bids of Rs. 30.3 billion in comparison to its last week’s volume of Rs. 20.9 billion.

However all bids received for the 182-day bill was rejected for a consecutive second week.

Once again it was the 364-day maturity which represented 91% of the total accepted amount of Rs. 8.8 billion according to Wealth Trust Securities.

It said secondary market Treasury bond yields increased yesterday mainly on the liquid two five-year maturities to a daily high of 11.28% from its opening levels of 11.20%.

Subsequent to the auction results been announced yields dipped to an intraday low of 11.20% but selling interest at these levels saw it close the day at levels of 11.27/30. Furthermore a limited amount of activity was witnessed on the 4 year maturity as well at levels of 11.10%. The 364-day bill was seen been quoted at levels of 11.25% to 11.35% subsequent to the auction.

Wealth Trust also said overnight call money and repo rates remained steady to average 9.44% and 8.59% respectively as liquidity remained high at Rs. 35.23 billion yesterday. An amount of Rs. 32.8 billion was mopped up from the system on an overnight basis at a weighted average of 8.35% by way of a Repo auction conducted by the Open Market Operations (OMO) Department of Central Bank.

The USD/LKR rate gained marginally yesterday by around 20 cents yesterday to close the day at Rs. 126.25 on the back of thin volumes. The total USD/LKR traded volume for the previous day (2 April 2013) stood at US$ 23.50 million.