Market experiences subdued activity at week’s end

By First Capital Research
The secondary market yield curve experienced limited activity and below moderate trading volumes at the week’s end, reflecting a subdued close to the trading week. 
The market witnessed mixed activity, amidst slight buying interest on the long end of the curve. Additionally, the Central Bank announced the issuance of Rs.182.5 billion in T-bills in an auction scheduled to be held on January 29, 2025, where Rs.42.5 billion is to be raised for the 91-day bill, Rs.60.0 billion is to be raised for the 182-day bill and Rs.80.0 billion is to be raised for the 364-day bill. Amongst the traded maturities, notable trades were amongst the 2028, 2030 and 2031 maturities. On the belly end of the curve, the 01.05.28 maturity traded at a rate of 10.30 percent. Similarly, 15.10.30 traded between rates of 11.35 percent - 11.33 percent. The 15.12.31 maturity traded at a rate of 11.45 percent. Meanwhile, on the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.298.9/US dollar, compared to Rs.298.7/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 decreased to Rs.139.99 billion, from Rs.156.13 billion recorded the previous day.