Market remains subdued as volumes stay thin

By First Capital Research

The secondary market withstood a quiet session marked by thin volumes whilst sentiment remained dull.

Notable transactions during the day were concentrated towards 2029 maturities, while the yield curve remained unchanged.

Trades executed during the day included maturities dated 15.09.2029, 15.10.2029 and 15.12.2029, which traded within a narrow range of 9.72 percent to 9.74 percent. 

The Central Bank conducted its weekly T-bill auction yesterday, where a sum of Rs.19.1 billion was accepted, despite total bids reaching Rs.53.2 billion. The amount raised also fell short of the initially offered Rs.33.5 billion. For the three-month maturity, Rs.5.4 billion was accepted with the weighted average yield declining by 1bp to 7.52 percent. The six-month bill saw an uptake of Rs.9.1 billion, while the 12-month maturity recorded Rs.4.5 billion. Weighted average yields for the six-month and 12-month bills remained unchanged at 7.89 percent and 8.02 percent, respectively.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.302.49/US dollar vs. Rs.302.48/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.174.3 billion from Rs.152.2 billion recorded the previous day.