Bond auction notches with yield being steady

By First Capital Research

Yesterday’s bond auction notched with the weighted average yields being steady as the Central Bank raised Rs.210.0 billion, achieving full acceptance across all the maturities offered.

The 15.12.2029 maturity closed at a weighted average yield rate of 10.72 percent, with Rs.85.0 billion fully accepted, while the 15.12.2032 and 15.09.2029 maturities closed at the weighted average yield rates of 11.40 percent and 11.50 percent, respectively, with Rs.75.0 billion and Rs.50.0 billion fully accepted from the respective maturities.

In the secondary market, the yield curve saw a slight decline, with the 2028, 2029 and 2030 bond maturities drawing significant buying interest, leading to moderate volumes and high levels of activity.

Amongst the traded maturities, at the belly end, the 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 bonds were traded between 10.20 percent to 10.00 percent. Whilst the 01.09.2028 and 15.10.2028 bond maturities traded in the range of 10.35 percent to 10.24 percent. 

Furthermore, following the bond auction, the 15.09.2029 bond maturity traded in the range of 10.72 percent to 10.65 percent and the 15.10.2030 maturity traded at the rate of 10.90 percent. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.295.50/US dollar, compared to Rs.295.45/US dollar recorded the previous day.