Measured buying persists, volumes improve

By First Capital Research

Monday’s buying interest persisted through yesterday’s trading session while trading activity and overall volumes showed a marked improvement. 

Amongst the traded maturities, the 2028 segment, ranging from 15.02.2028 to 15.12.2028 traded between 9.00% to 9.17%. In terms of 2029 maturities, 15.06.2029 and 15.09.2029 were seen trading between 9.50% to 9.56%. Moving ahead, 01.03.2030 and 15.05.2030 traded at 9.70% while 15.03.2031 and 15.05.2031 were seen changing hands between 9.92% to 10.04%. 

Further ahead on the yield curve, 01.06.2033 traded between 10.60% to 10.65% while 15.06.2034 was seen trading at 10.85%. Finally, the 15.06.2035 maturity, which attracted foreign buying traded at a rate of 10.90%. 

Yesterday the Public Debt Management Office concluded its weekly T-Bill auction where Rs. 89.8bn was raised against an offer of Rs. 120.0bn. The weighted average yields inched down across all tenures with that of the 3M Bill inching down by 4bps to settle at 7.80% while that of the 6M and 12M tenures dipped by 9bps and 3bps, settling at 8.17% and 8.33% respectively. 

On the external front, the LKR depreciated against the USD, closing at Rs. 309.45/USD compared to Rs.  309.23/USD recorded the previous day. Overnight liquidity in the banking system expanded to Rs.266.13bn from Rs.  212.55bn recorded previously.