Mixed sentiment persists in the secondary market

By First Capital Research

Secondary market sentiment remained mixed yesterday, similar to the previous session, while trading volumes stayed at moderate levels.Investor interest was especially visible in the mid- to belly-end of the yield curve, while activity was primarily driven by primary dealers and banking sector participants. 

Among the maturities traded, 01.05.2028, 15.10.2028 and 15.12.2029 traded at 10.60%, 10.65% and 10.90% respectively. Over the 2030 segment, 01.08.2030 traded between 11.19% and 11.14%, while 15.10.2030 traded between 11.23% and 11.15%. 

Moving ahead, 15.01.2033 changed hands within the range of 11.59% - 11.55% and 01.11.2033 traded between 11.70% - 11.60%. Moreover, 15.06.2034 traded in the range of 11.67% and 11.65%. Finally, 15.03.2035 was dealt at 11.80%.

The PDMO successfully raised the full offered amount of Rs. 70.0bn, attracting total bids of Rs. 130.5bn. Of the amount raised, all 3-month, 6-month and 1-year tenors were fully accepted at Rs.35.0bn, Rs. 25.0bn and Rs. 10.0bn, while the weighted average yields rose by 12bps to 10.14%, 5bps to 10.21% and 1bp to 10.17% respectively. 

On the external front, the LKR depreciated against the USD, standing at Rs. 334.77/USD, compared to Rs. 334.54/USD seen earlier. Liquidity in the banking system slightly contracted to Rs. 61.04Bn from LKR64.26bn recorded previously.

Popular maturities traded during the day: 01.05.2028:Unchanged, 15.10.2028: Unchanged, 15.12.2029: Unchanged, 01.08.2030: Unchanged, 15.10.2030: (-6bps), 15.01.2033: Unchanged, 15.06.2034: (-6bps), 15.03.2025: (-8bps).