Weekly Economic Review- KENANGA

Melissa Pereira Tue Jul 21, 2015 11:11 am

The weekly weighted averages of treasury bills continued their increasing trend for a third consecutive week with the 91-day bill reflecting the sharpest increase of 08 basis points to 6.22% against its previous week’s weighted average.

This was closely followed by the 182-day bill increasing by 05 basis points to 6.31% and the 364-day bill by 03 basis points to 6.31% as well with the 91-day bill continuing to dominate the auction as it represented 65% of the total accepted of Rs. 19.92 billion.

In secondary bond markets, buying interest saw yields on the 01.06.2018, 01.08.2021, 15.10.2021 and 01.09.2023 maturities dip to intraday lows of 8.00%, 9.10%, 9.15% and 9.55% respectively. However, following the outcome of the auction, yields were seen increasing once again to hit intraday highs of 8.05%, 9.15%, 9.25% and 9.70% as volumes changing hands increased.

In money markets, liquidity was seen increasing to over a six-week high to record Rs. 101.26 billion on 16th July, following a Rs. 86.4 billion bond maturity. Overnight call money and Repo remained steady to average 6.14% and 5.91% respectively.