Market rates stage a slight pickup following auction announcement

By First Capital Research

The secondary market witnessed yet another day of limited activity yesterday, with thin volumes being traded amidst mixed sentiment among participants. 

CBSL’s bond auction announcement on Monday, which aims to raise Rs. 155.0bn across three maturities, prompted a mild uptick in market rates, resulting in a slight upward shift in the yield curve.

Among the trades that took place yesterday, the 01.07.2028 maturity was seen trading at 9.00%, followed by the 15.09.2029 and 15.10.2029 maturities, both trading at around 9.55%. Within the 2030 segment, the 15.05.2030 and 01.07.2030 maturities were traded within a range of 9.63% to 9.70%.

In the forex market, the LKR remained broadly stable against the greenback, closing at Rs. 302.0/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 160.9bn, up from the previously recorded level of Rs. 155.9bn.