Market stalls ahead of T-Bond auction

By First Capital Research 

Measured buying interest re-emerged in the secondary market earlier in the week, driven by signs of easing geopolitical tensions. 

However, momentum faded yesterday, as participants adopted a wait-and-see stance ahead of today’s T-Bond auction, leading to a notable lull in activity. In this context, yesterday could be aptly described as a subdued session in the secondary market, marked by muted trading and limited engagement.

Amongst the limited trades that took place yesterday, 01.05.2028 traded at 8.85% while 15.10.2028 was seen changing hands at 8.94%. Moving ahead, 15.03.2031 traded at 10.10% and the 15.12.2032 maturity was seen trading at 10.42%. 

In the forex market, the LKR appreciated against the greenback, closing at Rs. 300.2/USD, compared to the previously seen rate of 300.5/USD. 

Meanwhile, overnight liquidity in the banking system expanded to Rs. 123.5bn from the previously seen level of Rs. 116.6bn.