Exchange Rates (Week ended 09th
November 2012)
Seasonal importer demand saw the rupee lose ground throughout the week,
close to the Rs. 131 level in comparison to its previous weeks closing level of
Rs. 130.32. However subsequent to the green back gained a bit of its lost
ground to close the week at Rs. 130.80. Given below are some forward dollar
rates that prevailed in the market on Friday;
1 Month – 131.83
3 Months – 134.25
6 Months – 137.50
The Money Market Performance (Week ended 09th November 2012)
With continuous buying interest on the three year and five year
maturities, its yields dipped below the shorter tenor one year and two year
maturities, reflecting an inverted yield curve in the market. A phenomenon as
such is very seldom and the sustainability of it is questionable. The one year
and four month bond was seen changing hands at levels of 12.75% and the 364 day
bill was seen changing hands at levels of 12.66%, while the three year and five
year maturities were seen changing hands at levels of 12.60% and 12.65%
respectively by the end of the week. This was despite Central banks borrowing
costs increasing on its 182 day and 364 day bills for a fourth consecutive
week, while the weighted average (WAY) on the 91 day bill remained steadily. A
reduced budget deficit for the year 2013, CBSL’s projections for inflation to
ease to mid-single digit levels by the second quarter of next year along with
growth expected to increase to 7.5% and the outcome of its fourth term reverse
repo auction was seen as the reasons towards the strange behavior of yield
curve. However interestingly, volumes changing hands were rather moderate
throughout the week as most participants were awaiting the monetary policy outcome
due by the end of the next week. Meanwhile in money markets, overnight call
money and repo rates closed the week steadily at 10.54% and 9.66% respectively
as market liquidity ended the week on a net deficit of Rs. 1.08Bn. The OMO
department of CBSL rolled over a maturing Rs. 8Bn term repo by re-issuing Rs. 9Bn
at a WAY of 9.87% for a further period of 31 days.
Exchange Rates (Week ended 02nd
November 2012)
The rupee lost ground throughout the week on the back of seasonal
importer demand to a low of Rs. 130.40 at where it closed the week against its
last week’s closing level of Rs. 129.90. Given below are some forward dollar
rates that prevailed in the market on Friday;
1 Month – 130.64
3 Months – 133.06
6 Months – 136.06
The Money Market Performance (Week ended 02nd November 2012)
Buying interest towards the latter part of the week, mainly on the five
year bond kept secondary market Treasury yields flat even as the weighted
averages on the weekly Treasury bill auction increased across the board by 2bp,
7 bp, and 8 bp respectively on the 91 day, 182 day, and 364 day bills to levels
of 10.68%, 11.97% and 12.56%. The deceleration in inflation on the point to
point basis for the month of October which was against market expectations
coupled with the third successful term reverse repo auction conducted by the
Open Market Operations (OMO) department of Central Bank, where it injected an
amount of Rs. 8Bn at a weighted average of 9.86% for a period of 31 days was
seen as the reasons that negated the upward trend in yields according to the market
sources. Volumes traded were rather moderate on bonds at trades were seen
taking place with in a thin band of 10 basis points on the more liquid 3 year,
5 year and 6 year maturities at levels of 12.60% to 12.70%, 12.70% to 12.80%
and 13.15% to 13.25% respectively. Furthermore the wait and see approach by
most market participants ahead of the upcoming Government’s annual budget
reading could be another reason behind a sluggish market. Meanwhile in money
markets, overnight call money and repo rates remained steady throughout the
week to average 10.54% and 9.67% respectively as market liquidity closed the
week at a net deficit of Rs. 3.08Bn and as any shortfall or surplus of liquidity
was addressed by the OMO department.
Exchange Rates (Week ended 21st
October 2012)
The rupee dipped above Rs. 129 during the latter part of the week to hit
a weekly low o Rs. 129.20 on Friday, mainly led by importer demand for contacts
value cash (19/10/12). Given below are some forward dollar rates that prevailed
in the market;
1 Month – 130.12
3 Months – 132.42
6 Months – 135.65
The Money Market Performance (Week ended 21st
October 2012)
Along with the announcement of the term reverse repo auction, the
increasing trend of bond yields experienced in the secondary market fuelled by
the weekly Treasury bill auction results which increased for the first time in
six week came to a halt by the end of the week. The monetary policy
announcement due next week coupled with the government’s annual budget due for
next month as well saw market participants adopting a wait and see policy. The
interesting factor was the thin volumes that were changing hands during the
first half of the week as the spread on two way quotes widened as yields
increased further. However a bit of buying interest towards the latter part of
the week saw quotes narrow down as traded volumes increased marginally as well.
In line with this, the more liquid 3 year, 5 year, and 6 year maturities
reflected the sharpest increases of 70 basis points each to weekly highs of
12.95%, 13.20% and 13.55% respectively.
Meanwhile in money markets, Central bank switched to a daily reverse
repo auction for the first time this week under its Open Market Operation (OMO)
on Friday by injecting an amount of Rs. 5Bn on an over night basis at a
weighted average 9.68% as liquidity returned to a deficit of Rs. 7.7Bn. However
overnight call money and repo rates remained steady to average 10.53% and 9.66%
for the week as any shortage or surplus of liquidity was injected or absorbed
by Central bank through its policy rates or OMO auctions or even a combination
of both.
Exchange Rates (Week ended 12th
October 2012)
The rupee was seen fluctuating with in a band of Rs. 128.15 to Rs.
128.70 during the week. The USD/LKR rate was seen appreciating to levels of Rs.
128.15 during the early part of the week on the back of dollar inflows in to
the system and forward booking by exporters. However importer led demand
towards the latter part of the week saw rate dip once again to close the week
at levels of Rs. 128.35/128.45. Given
below are some forward dollar rates that prevailed in the market;
1 Month – 129.65
3 Months – 131.90
6 Months – 135.00
The Money Market Performance (Week ended 12th
October 2012)
The downward movement of bond yields experienced in the secondary market
fuelled by Treasury bill auction results which continued to decline for a
fourth consecutive week came to a halt with the rates even picking up
considerably.
The wait and see approach by market participants ahead of the
Government’s annual budget coupled with market assumption that yield had
bottomed off were seen as the reasons behind this, as volumes traded declined
considerable as well which is considered a negative sentiment.
In line with this, the yield curve took a parallel shift upwards as the
five year maturity reflected the sharpest increase of 50 pb to weekly high of
12.50% while the 3 year bond increased by 40 bp to a high of 12.30%. In
addition the 1 ¼ year and the 6 year maturity increased by 35 bp and 30 bp as
well to weekly highs of 12.20% & 12.75% respectively. Furthermore
considerable volumes on the 364 day bill was seen changing hands at levels of
12.05% to 12.25%, reflecting an increasing trend on secondary market bills as
well.
However in a more positive note, money market liquidity reflected a turn
around this week from its negative levels the previous week as central bank
started conducting repo auctions in order to drain excess liquidity from the
system. This is turn saw overnight call money and repo rates ease marginally
towards the latter part of the week as liquidity is expected to increase
further next week, subsequent to a bond maturity to the tune of 64.9Bn due on
the 15th of October 2012.
Exchange Rates (Week ended 05th
October 2012)
The dollar rupee market witnessed extreme volatility once again as
buying pressure led by imported demand dropped the rupee value above Rs. 130
level during the week to hit weekly low of Rs. 130.15. However selling on
forward dollar contracts coupled with fresh dollar inflows in to the system at
these levels saw the rupee rebounded as much as 1.65 rupee towards the latter
part of the week at Rs. 128.50 Meantime the total USD/LKR traded volume for the
Tuesday (02-10-12) stood at a two month high US$ 117.76 million. Given below
are some forward dollar rates that prevailed in the market;
1 Month – 129.80
3 Months – 132.10
6 Months – 135.03
The Money Market Performance (Week ended 05th
October 2012)
The downward movement of bond yields experienced in the secondary market
continued for the third consecutive week with the rates even dropping faster
than earlier. The market momentum took fresh run during the latter part of the
week due to indications of Central Bank’s willingness to address on market
liquidity. Accordingly Central bank announced its plans to inject liquidity in
to the system on a term basis through its reverse repo auctions conducted by
its Open Market Operation (OMO) department for the first time since may 2009.
An amount of Rs. 10Bn was offered on Friday for a period of one month and an
amount of Rs. 8Billion placed at a weighted average of 9.81%. This coupled with
Central Bank’s extended facility on daily liquidity affected on overnight money
market rates to ease off marginally, despite market surplus liquidity remained
at a net deficit throughout the week.
The considerably buying interest on secondary Treasury bond market
helped 5 year maturity dipped below 12.00% for the first time in months whilst
Treasury bonds with maturities 2 year, 3 year, 4 year and 6 year were seen
trading at weekly lows of 11.60%, 11.70%, 11.75% and 11.95% respectively as
volumes traded were substantially high on all theses maturities. This led once
again, for the 2 year up to 6 years maturities to trade below the shorter tenor
182 day Treasury bill weighted averages of 12.10% while the 6 year maturity was
quoted below the 364 day weighted average of 12.48% as yields on the 91 day,
182 day and 364 day maturities dipped by 30 bp, 47bp and 54bp respectively at
its weekly Treasury bill auction held on 3rd of October.
Exchange Rates (Week ended 28th
September 2012)
The dollar rupee market witnessed extreme volatility during the past
week as rupee appreciated around Rs. 2 in comparison to the steadiness
witnessed during the previous week. The inward remittances to the stock market
along with the tightness in overnight money rates was seen as the main reason
for the appreciation in the rupee as dealers may converted excess dollar
inflows in order to bridge there money shortfalls. This resulted in the rupee
strengthening to an weekly high of Rs. 129.00 on the 27th and to
close the week with in the range of Rs. 129.40 – Rs. 129.50. Given below are some forward dollar rates that
prevailed in the market;
1 Month – 130.63
3 Months – 133.00
6 Months – 136.33
The Money Market Performance (Week ended 28th
September 2012)
The amalgamated dip of 14 basis points, 55 basis points and 34 basis
points respectively within just two weeks on weighted averages of 91 day, and
182 day and 364 day Treasury bills drove the secondary market panic as market
participants considered it as peak of the interest rates. The news about budget
discipline coupled with discipline in monetary numbers aggregated further the
bullish market to even yields on longer tenure Treasury bonds to come down than
the weighted average of one year Treasury bill. Consequently the heavily traded
Treasury bond maturities of 01.04.14, 15.07.15, 01.04.16 and 15.07.17 reached
weekly high of 12.00%, 12.15%, 12.25% and 12.30% respectively by narrowing down
the gap between in each maturity in comparison to weighted averages of 91day,
182 day, and 364 day of 11.30%, 12.57%, and 13.02% respectively. However the
money market liquidity became the only worrying factor to the market
participants as surplus liquidity was not improved much during the week and
even the Central bank discounted window at 9.75% was accessed several times by
market participants. However the overnight call money and repo rates remained
steady with in the range of 10.50%-10.60% and 9.60%-9.70% respectively as Central
Bank conducted reverse repo auctions under its open market operations(OMO) to
inject money in to the system.
Exchange Rates (Week ended 21st
September 2012)
In the Forex markets the USD/LKR rate appreciated considerably by around
67 cents to Rs. 131.50 yesterday against its previous week’s closing level of
Rs. 132.17. However during morning trades on Friday the rupee gained to an
intraday high of Rs. 131.30 as considerable volumes were seen been traded
throughout the week. Given below are some forward dollar rates that prevailed
in the market;
1 Month – 132.66
3 Months – 135.05
6 Months – 138.48
The Money Market Performance (Week ended 21st
September 2012)
The Treasury bond market reflected a Bull Run
during the week as yields dipped across all maturities. The reduced offered
amounts at the weekly Treasury bill auction coupled with reduction in Central Bank’
placement rates were seen as the main reasons behind this. The weighted
averages on 91 day, 182 day and 364 day maturities dipped the most in 6 weeks
to 11.41%, 12.91% and 13.30% respectively, reflecting a decline of 3 basis
points, 21 basis points and 6 basis points respectively. Interestingly only an
amount of Rs. 7.6Bn was accepted from the total bids received amount of Rs.
27Bn, where the offered amount was only Rs. 7.0Bn. This led to the more liquid
Treasury bonds maturities of 01.04.14 and 15.07.15 to dip the most with heavy
trades taking place on it. Accordingly those two maturities reached weekly lows
of 12.95% and 13.10% whereas it closed the previous week at levels of 13.71%
and 13.91% respectively. The maturities of 01.04.16, 15.06.17 and 15.08.18 were
also traded heavily to close the week at levels of 13.40%-13.50%,
13.65%-13.75%, and 13.90%- 14.00 % respectively. However in contrast to the
positive run on the secondary bond market, in money markets, surplus liquidity
continued to drop during the week to reach net deficit of Rs. 13.48 Bn on
Friday. However the overnight call money and repo rates remained steady with in
the range of 10.50%- 10.60% and 9.60%-9.65% respectively as Central Bank
conducted reverse repo auctions under its open market operations(OMO) to inject
money in to the system.
Exchange Rates (Week ended 16th September 2012)
In the Forex markets the USD/LKR rate depreciated marginally by 15 cents
to Rs. 132.17 on Friday against its previous day’s closing level of Rs. 131.99.
However morning trades saw the rupee dip to an intraday low of Rs. 132.25 on
the back of demand for contracts value (17/09/12). Given below are some forward
dollar rates that prevailed in the market;
1 Month – 133.48
3 Months – 136.10
6 Months – 139.98
The Money Market Performance (Week ended 16th September 2012)
The downward movement of bond yield experienced in the secondary market
fuelled by Wednesday’s Treasury bill auction results which remained unchanged
came to halt with the rates even picking up marginally on Friday. A decline in
market liquidity with the CBSL adding LKR 3.0Bn at a rate of 9.64% through its
open market operations on Friday resulted in a marginal increase in the bond
yield and considerable selling pressure. On Friday the short tenure 18 months
bond and 3 year bond reflected the highest increase of 5 basis points and 4
basis points respectively at an intraday high of 13.71% and 13.92%
respectively. In addition the 4 year maturity increased by 3 basis points as
well to an intraday high of 14.11% whilst the 5 year maturity traded in the range
of 14.17% to 14.20%.
Meanwhile on Friday, liquidity in the market moved in to net deficit of
Rs. 3.656Bn. An amount of Rs. 0.87Bn was borrowed by market participants at
Central Bank’s discount window rate of 9.75% while an amount of Rs. 0.214Bn was
invested at its Repo window rate of 7.75%. However overnight call money and
repo rates remained steady to average 10.47% and 9.60% respectively.
Exchange Rates (Week ended 07th September 2012)
The rupee traded within the range of Rs. 132.25 to Rs. 132.45 during the
last week. The dollar weekend to a
weekly low of Rs. 132.41 on the 07th September and the volumes traded on it was
seen high during the week. This could be due to the liquidity short fall
witnessed in the system as traders might have convert dollar proceeds in to
rupees in order to bridge their money shortfalls. Given below are some forward
dollar rates that prevailed in the market:
1 month – 133.62
3 months – 136.19
6months–139.99
The Money Market Performance (Week ended 07th September 2012)
Up’s and down’s in money market liquidity put overnight rates under
pressure throughout the week. The week started with Central Bank injecting an
amount of Rs. 7.00 Bn to the system at a weighted average of 9.62% through its
Open Market Operations (OMO) for the first time after the dollar bond sale as
market liquidity recorded a negative of Rs. 7.7Bn for first time five weeks.
However this reverse Repo auction was limited to the first three days of the
week as market liquidity turned around to a positive value of Rs. 1.2Bn by
Thursday. Yet Central bank’s standing facility at the rate of 9.75% was seen
accessed throughout the week.
The tightness in money markets affected yields on Treasury bill and bond
markets to move up as some market participants was seen unwinding their
positions. In primary market the weighted averages on all 3 maturities edged up
at weekly Treasury bill auction held on 05th September. Accordingly
rates on 91 day bill increased by 3 basis points to 11.44% while 182 day and
364 day bills jumped by 05 basis points each to 13.12% and 13.36% respectively.
It is interesting to note that demand for the trading favorite 182 day bill
helped Central Bank to cover up its requirements as it represents 87% of the
total accepted amount.
In Secondary bond markets, yields on treasury bonds increased across the
board. Accordingly yields on the 3 year maturity increased the most by 10 basis
points to 13.98% as considerable volume changed hand on it while the two year
maturity advanced by 05 basis points to 13.80%. A limited amount of activity
was witnessed on the five year maturity as well at levels of 14.31% to 14.35%.
Exchange Rates (Week ended 02nd September 2012)
The rupee appreciated marginally to levels of Rs. 132.25 during the
latter part of yesterday, subsequent to dipping to an intraday low of Rs.
132.45 during early hours of trading due to demand for contracts value cash
(30-08-12). Dollar inflows in to the system coupled with export conversions was
seen as the reasons behind the marginal appreciation according to market
sources. The total dollar/rupee traded volume for the previous day (29-08-12)
stood at USD 41.7 million. Given below are some forward dollar rates that
prevailed in the market.
1 month – 133.52
3 months – 135.95
6months –139.42
The Money Market Performance (Week ended 02nd September 2012)
In money markets, overnight liquidity continued to increase for a third
consecutive day to a 16 day high of Rs. 11.17Bn yesterday as call money and
repo rates edged up very marginally on the last working day for the month to
average 10.58% and 9.60% respectively. An amount of Rs. 6.5Bn was mopped up
from the system at a weighted average of 9.432% through Central Banks Open Market
Operation (OMO).
In bond markets, the five year maturity dipped by 4 basis points (bp) to
an intraday low of 14.30% as average volumes changed hands. However profit
taking coupled with selling pressure at these levels saw its yield increase
once again to levels of 14.32% - 14.33%. A limited amount of activity was
witnessed on the three year maturity as well at levels of 13.87%. Given below
are the closing, secondary market yields for the most frequently traded
maturities,
Treasury Bills & Treasury Bonds
91 Days Bills – 11.42/ 11.52 / 01/04/14 – 13.72/13.78
182 Day Bills - 13.07 / 13.15 15/07/15 - 13.84 / 13.90
364 Day Bills - 13.30 / 13.38 01/04/16 – 14.20 / 14.25
15/07/17 - 14.32 / 14.34
01/11/19- 14.45 / 14.65
Exchange Rates (Week ended 24th August 2012)
The rupee traded between narrow ranges of Rs. 132.20 to Rs. 132.35
during the week as forward dollar premiums increased on back of importer
demand. Considerable volumes were seen been traded on contracts for value cash
and tom throughout the week. Given below are some forward dollar rates that
prevailed by the end of the week.
1 month – 133.63
3 months – 133.58
6 months – 136.13
The Money Market Performance (Week ended 24th August 2012)
Secondary
Market Treasury Yield Edges Up During the Week
Secondary market treasury yields edges up during the start of the week
on the back of expectations for weighted averages (WAVG) to increase at the
weekly Treasury bill auction. The 19 month bond and the 3 year bond reflected
the highest weekly increase of around 10 basis points as Treasury bill WAVG increased
by 7bp and 4bp respectively on the 182 day and 364 day maturities to 13.02% and
13.27%. Furthermore the 91day maturity remained steady at 11.36%. However
yields dipped by around 5 bp towards the latter part of the 17th August week
Exchange Rates (Week ended 17th August 2012)
The rupee lost
grounded 75 cents during the latter part of the week to a 1 month low of Rs.
132.75 on the back of importer dollar demand. However selling pressure at these
levels saw it appreciate once again to levels of Rs. 132.30. Given below are
some forward dollar rates that prevailed.
1 month – 133.63
3 months – 135.95
6 months – 139.38
The Money Market Performance (Week ended 17th August 2012)
Steady decline in
market surplus liquidity put overnight call money and repo rates under pressure
during the week. Accordingly overnight call money and repo rates peaked to a
weekly high of 10.53% and 9.63% respectively as market liquidity drop down
below Rs. 10 Billion for the first time in three weeks.
The reduction in
the proposition of surplus liquidity held by the local participants further
added pressure on the overnight rates. However Central Bank kept its weighted
average of the daily repo Open Market Operation (OMO) auctions at 9.43% throughout
the week.
In line with
these, weighted average on 182 day and 364 day bill increased 04 basis points
and 05 basis points respectively, though the 91 day bill surprisingly dipped by
01 basis point at its weekly Treasury bill auction held on 15th
August. Interestingly healthy demand for the 182 day bill continued as more
than Rs. 10Bn was accepted for a 7th consecutive week.
This intern helped
Central Bank to accept more than it’s offered amount for the consecutive forth
week. Activity in the secondary bond market moderated towards the latter part
of the week as yields edged up marginally during the week in comparison to the
previous weeks closing yields.
Exchange Rates (Week ended 20th July 2012)
The rupee appreciated sharply against dollar towards the later part of the week ahead of the dollar bond proceeds due over the next week and the IMF final tranche of its standby agreement. The rupee close the week at Rs.131.65 against its opening levels of Rs.133.80.Given below are some forward dollar rates that prevailed in the market during the past week.
3 months 134.66
The Money Market Performance (Week ended 20th July 2012)
Market liquidity witnessed a noticeable volatility during for the week ending 20th July, as overnight Call money and Repo rates were pressured upwards to levels of 10.70% and 9.70% respectively. On Friday Central bank re commenced its reverse repo auctions for the first time in four weeks by infusing an amount of Rs 3.1 Bn into the system at a weighted average of 9.56%. However market liquidity is expected to increase during the coming week due the realization of the dollar bond proceeds which historically has added liquidity to the system. Continuing with the recent trend the weighted averages of the benchmark 91 day, 182 day and 364 day maturities increased by 02,05 and 06 basis points respectively at the weekly Treasury bill auction. Furthermore only an amount of Rs 16.777 Bn in total was accepted at the auction from the total offered amount of Rs 25 On. Interestingly demand for the 182 day bill continued once again, which was intern helped Central Bank to cover 80% of its total acceptance by taking more from the said maturity. However the increasing in weighted averages considered lower than expected and in line with this secondary market yields on treasury bills reflected a downward trend. Along with this activity in the secondary bond market Increases as well with buying interest shown across the yield curve. Market participants were seen to be eagerly awaiting the outcome of the dollar bond proceeds being realized on the 25th of July 2012.
Courtesy:Asset Trust Management (Pvt) Ltd, Wealth Trust Securities (Pvt) Ltd
Exchange Rates (Week ended 13th July 2012)
The dollar rupee rate remained mostly unchanged within the range of Rs.133.50 to Rs.133.90 during the week. According to market sources, a more positive and stable sentiment was seen developing on the rupee towards the later part of the week ahead of the planned sovereign dollar bond issue. Given below are some forward dollar rates that prevailed in the market during the past week.
1 month - 134.93
3 months - 137.08
6 months - 140.30
The Money Market Performance (Week ended 13th July 2012)
Exchange Rates (Week ended 8th June 2012)
The Money Market Performance (Week ended 13th July 2012)
Despite Central Bank keeping its policy rates unchanged for the third consecutive month, its borrowing costs continued to increase, at the weekly Treasury bill auction held on the 11th of July. Accordingly weighted averages on the benchmark 91 day, 182 day and 364 day maturities moved up by 14 basis points, 9 basis points and 11 basis points respectively. Interestingly demand for the 182 day bill continued once again, which intern helped Central Bank to accept more than its total offered amount.
Furthermore the weighted average of the daily repo Open Market Operation (OMO) auction continued to rise during the week which intern capped overnight call money and repo rates at 10.50% and 9.50% respectively, which if not could have moved down as a result of increased liquidity witnessed during the week. In addition the authorities mopped up a further Rs 2.1 Bio from the system by way of a short term bill auction of 25 days at a weighted average of 10.92%. This is in line with its policy of maintaining tight monitory policy.Activity in the secondary bond market increased as well towards the later part of the week with the more liquid rise year maturity increasing by 20 basis points to close the week at 13.60%/13.65%.
Furthermore the weighted average of the daily repo Open Market Operation (OMO) auction continued to rise during the week which intern capped overnight call money and repo rates at 10.50% and 9.50% respectively, which if not could have moved down as a result of increased liquidity witnessed during the week. In addition the authorities mopped up a further Rs 2.1 Bio from the system by way of a short term bill auction of 25 days at a weighted average of 10.92%. This is in line with its policy of maintaining tight monitory policy.Activity in the secondary bond market increased as well towards the later part of the week with the more liquid rise year maturity increasing by 20 basis points to close the week at 13.60%/13.65%.
Exchange Rates (Week ended 6th July 2012)
The dollar rupee rate traded within the range of Rs 132,90 to 133.90 during the last week. According to market sources the rupee appreciated during mid week as expoorters were seen converting dollars.Given below are some forward dollar rates that prevailed in the market during the past week.
1 month - 134.18
The dollar rupee rate traded within the range of Rs 132,90 to 133.90 during the last week. According to market sources the rupee appreciated during mid week as expoorters were seen converting dollars.Given below are some forward dollar rates that prevailed in the market during the past week.
1 month - 134.18
3 months - 136.23
6 months - 139.60
The Money Market Performance (Week ended 6th July 2012)
The Central bank continued to drain funds from the system through its daily Open Market Operation (OMO) as a result of increased liquidity witnessed in the market during the period.This intern saw the overnight call money and repo rates capped at 10.40% and 9.40% respectively, which if not could have moved down further. The Central Bank announced a short term auction in order to drain of Rs.6 billion from the market on Friday. Central banks borrowing costs continued its rising trend, at the weekly Treasury bill auction held on the 04th of July. Accordingly weighted averages on the benchmark 91 day, 182 day and 364 day maturities have jumped by 8 basis points, 16 basis points and 11 basis points respectively. interestingly demand for the 182 day bill continued once again, which was intern helped Central Bank to cover its total requirement by accepting more from the said maturity. Further secondary market for treasury bonds became at tive in the later part of the week, ahead of next week's monetary policy deasiori.
Exchange Rates (Week ended 29th June 2012)
The Money Market Performance (Week ended 6th July 2012)
The Central bank continued to drain funds from the system through its daily Open Market Operation (OMO) as a result of increased liquidity witnessed in the market during the period.This intern saw the overnight call money and repo rates capped at 10.40% and 9.40% respectively, which if not could have moved down further. The Central Bank announced a short term auction in order to drain of Rs.6 billion from the market on Friday. Central banks borrowing costs continued its rising trend, at the weekly Treasury bill auction held on the 04th of July. Accordingly weighted averages on the benchmark 91 day, 182 day and 364 day maturities have jumped by 8 basis points, 16 basis points and 11 basis points respectively. interestingly demand for the 182 day bill continued once again, which was intern helped Central Bank to cover its total requirement by accepting more from the said maturity. Further secondary market for treasury bonds became at tive in the later part of the week, ahead of next week's monetary policy deasiori.
Exchange Rates (Week ended 29th June 2012)
The dollar rupee rate traded within the range of 133.00 to
134.00 during the last week witnessing a weekly low of Rs. 134.30 on 28th
June. Interestingly spot market for the dollar rupee was inactive during the
early part of the week with no two way quotes through market transactions for
the spot next were active. Given below are some forward dollar rates that
prevailed in the market during the past week.
1 month – 134.98
3 months – 136.03
6 months – 140.75
The Money Market Performances (Week ended 29th June
2012)
Inter-bank call money and repo rates decreased during the
week ending 29th June with market liquidity improving during said
period. The call money and repo rates which were at 9.65% and 10.65%
respectively a week earlier reduced to 9.35% and 10.35% respectively while
liquidity which was at negative of Rs. 0.406Billion a week earlier increased to
Rs. 19,126 Billion as of 28th June. Despite the increased liquidity
the weighted averages of Central Bank’s daily repo Open Market Operation (OMO)
auctions edged upwards to 9.28% as of 29th June.
The Central Bank’s borrowing cost
increased once again with the weekly Treasury bill auction yields picking up by 08,14 and 10 basis points
respectively. Accordingly weighted averages of 91 day, 182 day and 364 day
maturities recorded at 11.12%, 12.61% and 12.88% respectively. Nonetheless the
selling pressure on treasury bonds remained mostly unchanged with the rates at
the Treasury bond auction being in line with market expectations. The weighted
averages of 5 year, 8 year and 10 year bonds recorded at 14.15%, 14.40% and
14.75% respectively.
Thanks: Asset Trust Management (Pvt) Ltd.
Exchange Rates (Week ended 22nd June 2012)
The dollar rupee rate traded within the range of 132.20 to
133.40 during the past week with some depreciation pressure building up due to
import led demand. Given below are some forward dollar rates that prevailed in
the market during the past week.
1 month – 134.40
3 months – 136.63
6 months – 140.48
The Money Market Performances (Week ended 22nd June
2012)
The Central bank injected funds twice through its daily Open
Market Operation (OMO) as a result of volatile liquidity witnessed in the
market during this period. This intern saw the overnight call money and repo
rates capped at 10.65% and 9.65% respectively, which if not could have moved up
further.
Central Banks borrowing costs continued its rising trend, at
the weekly Treasury bill
auction held on the
20th of June. Accordingly weighted averages on the benchmark 91days,
182 day and 364 day maturities have jumped by 9 basis points, 18 basis points
and 11 basis points respectively. A total of Rs. 16.273 Billion was accepted
from the market over its offered amount of Rs. 12.00 Billion. Interestingly the
Central Bank continued to favor 182 day maturity bills by accepting 9.2Bn from
the offered amount of Rs. 5.00Bn.
In line with money market developments the secondary market
rates continued to increase in the early part of the week though it witnessed
some downward trend in the later part of the week.
Thanks: Asset Trust Management (Pvt) Ltd.
Exchange Rates (Week ended 8th June 2012)
In line with the Central Bank and Government indicators that the rupee is undervalued, the rupee appreciated by around Rs. 1.00 during the early part of the week to reach Rs. 130.00, but loss ground marginally once again towards the latter part of the week to close the week at Rs. 130.50. Given below are some forward dollar rates prevailed;
1 month – 131.60
3 months – 133.85
6 months – 137.15
The Money Market Performance (Week ended on 8th June)
The decline in the weekly maturity volumes of Treasury bills, an increase in foreign bill holdings, high market liquidity coupled with continued demand for shorter tenure maturities saw the 91 day maturity go below the psychological level of 11% for the first time in three months to record a weighted average of 10.86% at its weekly Treasury bill auction held on the 06th June 20102. In contrast to the previous week, Central Bank accepted only its offered amounts on the 91 day and 182 day maturities and this led to the weighted average on the 182 day to dip by 17 basis points in comparison to its last week dip of just 3 basis points. However the increasing trend on the 364 day maturity continued as it recorded an increase of 6 basis points over its last weeks weighted average. This indicates market participant’s stagnant appetite for longer tenure maturities.
Continuing with the recent trend the weighted average of Central bank’s daily Open Market Operation (OMO) auctions were seen edging upwards to a high of 8.85% on Thursday; Except for Friday, where the auction was not concluded. Yet Overnight Call Money and Repo rates remained mostly unchanged during the week at levels of 9.90% - 10.00% & 8.90% to 9.00% respectively. Further more market participants were seen to be eagerly awaiting Central Bank’s Monetary Policy announcement due on the 13th of June 2012.
Thanks: Asset Trust Management (Pvt) Ltd.The Money Market Performance (Week ended 1st June 2012)
The Central Bank once again increased it’s exposure to its shortest two maturities at its Weekly Treasury bill auction held on the 30th of May. Accordingly the shortage between the offered amounts of Rs. 15Bn and the accepted amount of Rs. 5.1 Bn on its 364 day maturity was recovered from its 91 day and 182 day maturities, where amounts of Rs. 3.1 Bn and Rs. 8.3Bn respectively was accepted in excess over their offered amount of Rs. 5Bn and Rs. 10Bn. However weighted averages reflected opposite directions, with the 91 day dropping as much as 57 basis points, while the 182 reflected a marginal drop of only 3 basis points in comparison. Surprisingly the weighted average on the 364 day maturity reflected an increase of 10 basis points. Given below the weighted averages:
3 months - 11.01%
6 months - 12.29%
12 months- 12.60%
In line with the weekly Treasury bill auction, bond yields at the secondary market increased marginally on the more active 2 & 3 year bonds, to close the week at levels of 13.15% & 13.73% respectively in comparison to its weeks opening levels of 13.10 and 13.68%. Further more activity on the longer tenure of yield curve was witnessed as well with the 5 year bond been traded with in the range of 14.05% to 14.15% and the 7 year bond with in the range of 14.20% to 14.30%.
Continuing with the recent trend the weighted average of Central Bank’s daily Open Market Operation (OMO) auction was seen edging upwards to 8.79% by Friday, as its offered amount reduced to Rs. 12Bn by the end of the week. In line with this Overnight Call money and Repo rates moved up marginally to levels of 10.00% and 9.00% respectively.
Thanks: Asset Trust Management (Pvt) Ltd.
Exchange Rates (Week ended 25th May 2012)
The rupee continued to dip further through out the week to close the week at Rs. 131.10. Given below are some forward dollar rates that prevailed i the market.
1 month- 132.28
3 months- 134.25
6 months- 137.30
The Money Market Performance (Week ended 25th May 2012)
The Central bank's borrowing cost on its shortest maturity decreased drastically at its weekly Treasury bill auction held on the 23rd of May 2012. Accordingly the weighted average of the benchmark 91 day maturity dipped 41 basis points with the total offered amount of Rs.6 Billion been fully accepted. Meanwhile the 182 day and 364 day maturities also dipped 8 basis points each for the first time in three months. This could be due to the prevailing liquidity surplus and market's appetite for the shorter tenure maturities. However it is interesting to note that the demand for the 182 day maturity has increased and that was sufficient for Central bank to cover its requirements without accepting additional on the shorter tenure 91 day maturity, which was the case at its previous three auctions. Thus a high amount of Rs.13.8 billion was accepted on the 182 day maturity over it offered amount of Rs.7 billion. This resulted in the secondary market for the three maturities dipping further to levels of 11.30%, 12.10% & 12.45% respectively. However the weighted average of Central Bank's daily Open Market Operation (OMO) auctions were seen edging up while the offered amount was seen reducing throughout the week. Despite this the surplus liquidity in the market remained at Rs 19.1 Bn as off 24th May. In line with this, Overnight Call money and Repo rates remained mostly unchanged within the range of 9.70% - 9.90% and 8.70% - 8.90% respectively. Furthermore in line with the dip in treasury bill yields, activity in the secondary bond market increased as well, with the 2 year and 3 year maturities been the most actively traded as it dipped to weekly lows of 13.05% & 13.45% respectively from its weeks opening levels of 13.25% & 13.70.
