Limited trading amidst T-bond auction

By First Capital Research 

Amidst the T-bond auction held yesterday, the secondary market saw a lacklustre trading session with limited activity, while the yield curve remained broadly unchanged. 

As the trades were concentrated towards the 2030 segment, the 01.03.2030 and 15.10.2030 bonds traded at 11.25 percent and 11.50 percent, respectively. 

At the T-bond auction held yesterday, the PDMO successfully raised the full amount offered. Of the total accepted, Rs.70.0 billion was raised through the 2030 maturity, Rs.50.0 billion through the 2034 maturity and Rs.30.0 billion through the 2037 maturity, at the weighted average yields of 11.57 percent and 12.04 percent, and 12.58 percent, respectively.

On the external front, the Sri Lankan rupee appreciated against the US dollar, standing at Rs.335.76/US dollar, compared to Rs.336.40/US dollar seen earlier. Overnight liquidity in the banking system expanded to Rs.152.35 billion, from Rs.116.72 billion recorded previously.