Market in slumber, yields barely budge

By First Capital Research

The secondary market withstood another dormant day of limited activity and thin volumes, in turn prompting the yield curve to hold steady. 

Among the few trades that took place during the day, 15.02.2028 and 15.03.2028 traded at 8.70 percent while 01.07.2028 was seen changing hands at 8.80 percent. Moving ahead, the 15.12.2029 maturity traded at 9.50 percent. Finally, the 15.03.2031 maturity traded at 9.95 percent. 

Yesterday, the Central Bank of Sri Lanka successfully completed its weekly T-bill auction, raising the full initial offer of Rs.175.0 billion. The three-month T-bill garnered Rs.15.0 billion, with its average weighted yield steady at 7.55 percent. Strong demand for the six-month tenure saw Rs.83.5 billion raised, while its yield inched down marginally by 1bps to 7.72 percent. Meanwhile, the 12-month T-bill raised Rs.76.5 billion, maintaining a stable yield of 7.94 percent.

In the forex market, the Sri Lankan rupee appreciated marginally against the greenback, closing at Rs.299.10/US dollar, compared to the previously seen rate of Rs.299.14/US dollar. Meanwhile, overnight liquidity in the banking system expanded to Rs.184.8 billion, from Rs.182.7 billion in the previous session.