Foreign demand across targeted tenors boosts trading volumes

The secondary market was abuzz with activity yesterday, as foreign demand for select tenors provided a significant boost to trading volumes.

Selling interest was evident in the 2029 segment, with the 15.06.2029, 15.09.2029 and 15.10.2029 maturities trading in the 10.90%–11.00% range. 

In contrast, the 2030 segment witnessed buying interest, particularly from foreign investors, with the 15.01.2030 maturity trading between 11.45% and 11.37%. Mixed activity was observed across the 2032 and 2033 tenors, with the 15.12.2032 and 01.11.2033 maturities changing hands at 11.65% and 11.70%, respectively. Meanwhile, the 15.03.2035 maturity also attracted foreign buying interest and traded at 11.80%.

At the weekly Treasury bill auction, the Public Debt Management Office successfully raised the full initial offer of Rs. 100.0 billion. The weighted average yield on the 3M bill increased by 9bps to 10.23%, while the 6M bill also recorded a 9bps rise to 10.30%. Meanwhile, the weighted average yield on the 12M bill edged up by a modest 3bps to 10.20%.

On the external front, the LKR appreciated against the USD, standing at Rs. 336.17/USD, compared to Rs. 336.66/USD seen earlier. Liquidity in the banking system expanded to Rs. 89.83 billion from Rs. 82.56 billion recorded previously.

Popular maturities traded during the day: 15.10.2030: +5bps; 15.03.2035: -5bps.