2037 maturity rejected at T-Bond auction

By First Capital Research

Secondary market yields moved slightly higher yesterday ahead of the auction, with the upward pressure most evident at the shorter end of the curve. However, following the auction, yields, particularly in the 2029-2030 maturity segment retraced to their pre-auction levels.

Within the 2029 segment, the 15.09.2029 and 15.10.2029 maturities traded in the range of 12.50%-12.10%. Meanwhile, the 01.03.2030 maturity traded at 12.50%, while the 15.05.2030 maturity changed hands at 12.40%. Further along the curve, the 01.08.2030 maturity traded at 12.20%.

At the T-Bond auction, the PDMO raised only a portion of the amount offered, securing Rs. 80.7bn against an initial offer of Rs.150.0bn. Of the total accepted, Rs. 44.4bn was raised through the 2030 maturity and Rs. 36.2bn through the 2032 maturity, at weighted average yields of 11.65% and 12.67%, respectively. Meanwhile, bids received for the 2037 maturity were rejected at yesterday’s auction.

On the external front, the LKR appreciated against the USD, standing at Rs. 331.00/USD, compared to Rs. 337.63/USD seen earlier. Liquidity in the banking system expanded to Rs. 66.62bn from Rs. 57.38bn recorded previously.