Mixed stance persists, resulting in moderate trading volumes

By First Capital Research

In yesterday’s weekly T-bill auction, the weighted average yield rates experienced a slight further decline. 

The weighted average yield rates for the three-month, six-month and 12-month T-bills stood at 7.53 percent, 7.86 percent and 8.34 percent, respectively, reflecting auction yield drops of 4bps, 1bps and 1bps. Furthermore, the Central Bank offered a total of Rs.167.0 billion worth of T-bills collectively and this amount was fully subscribed.

In the secondary market, market participants adopted a mixed stance, resulting in moderate trading volumes and limited market activity. Amongst the traded maturities notable trades were recorded in the 2028, 2029, 2030 and 2032 bond maturities. Accordingly, at the belly end, both the 15.01.2028 and 15.02.2028 maturities traded between 9.90 percent to 10.00 percent. Whilst the 15.07.2028 bond maturity traded between 10.21 percent to 10.18 percent. The 15.10.2028 and 15.12.2028 maturities traded between 10.29 percent to 10.39 percent. 

Meanwhile, the 15.06.2029 maturity traded at 10.62 percent and the 15.09.2029 maturity traded between 10.75 percent to 10.71 percent. Furthermore, 15.05.2030 and 15.10.2030 traded between 10.90 percent to 11.00 percent whilst the 01.10.2032 maturity traded at 11.45 percent. 

The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system expanded to Rs.173.0 billion, from Rs.149.0 billion recorded the previous day.