Mixed sentiment meets steady continuation

By First Capital Research

Similar to the previous day, the secondary market depicted mixed sentiment with moderate trading volumes, with the yield curve remaining steady.

Among the trades that took place, the 15.01.2028 and 15.02.2028 maturities traded at 9.00 percent. While 15.10.2028 traded at 9.07 percent, 15.09.2029 traded at 9.47 percent. Both the 15.05.2030 and 15.07.2030 maturities changed hands at 9.60 percent. Towards the long end of the curve, 01.11.2033 traded at 10.45 percent and 15.06.2035 traded between 10.65 percent-10.69 percent.

The Central Bank conducted its weekly T-bill auction yesterday, raising Rs.63.1 billion, falling short of the offered amount of Rs.86.0 billion. The three-month bill raised Rs.4.0 billion, falling short of its initial offer of Rs.16.0 billion, while the yield remaining unchanged at 7.52 percent. The six-month bill raised the same amount as its initial offer of Rs.45.0 billion, with the yield remaining unchanged at 7.91 percent. Meanwhile, the 12-month bill raised Rs.14.1 billion, falling below its initial offer of Rs.25.0 billion, as the yield changed by 1bps to 8.03 percent.

On the external front, the Sri Lankan rupee slightly appreciated against the US dollar, closing at Rs.307.8/US dollar, compared to Rs.307.9/US dollar seen previously. Overnight liquidity in the banking system marginally expanded to Rs.95.62 billion, from Rs.87.79 billion recorded on the previous day.