Market closes week with mixed activity and moderate volumes

By First Capital Research
The secondary market yield curve witnessed a day of moderate volumes and mixed activity. 
The Central Bank announced the issuance of Rs.157.5 billion in T-bills in an auction scheduled to be held on February 11, 2025, where Rs.27.5 billion is to be raised for the 91-day bill, Rs.55.0 billion is to be raised for the 182-day bill and Rs.75.0 billion is to be raised for the 364-day bill. 

Amongst the traded maturities, notable trades were amongst the 2026, 2028 and 2030 maturities. On the short end of the curve, 01.08.26 was seen trading at a rate of 8.80 percent. On the belly end of the curve, 01.05.28 traded between rates of 10.29 percent - 10.26 percent, while the 15.10.28 and 15.12.28 maturities traded between rates of 10.48 percent - 10.39 percent. The 15.10.30 maturity traded between 11.29 percent - 11.26 percent. Additionally, the six-month bill was seen trading at a rate of 8.00 percent.
On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.298.2/US dollar, compared to Rs.298.9/US dollar recorded the previous day. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system contracted to Rs.144.29 billion, from Rs.159.89 billion recorded the previous day.