Moderate trading in secondary market following weekly T-bill auction

By First Capital Research

The secondary market exhibited mixed sentiment following yesterday’s weekly T-bill auction, with trading activity remaining moderate in terms of volume.

In the treasury bill segment, maturities ranging from three to 10 months were actively traded, with yields spanning from 7.75 percent to 8.02 percent. In the treasury bond space, the 15.06.2029 and 15.12.2029 maturities were quoted at yields of 9.45 percent and 9.55 percent, respectively. 

The 01.07.2030 maturity changed hands at 9.72 percent. Further along the curve, the 15.03.2031 bond was traded at a yield of 10.05 percent. Finally, the 15.06.2035 bond was transacted at a yield of 10.90 percent.

Yesterday, the Central Bank accepted Rs.54.0 billion at its weekly T-bill auction, below the targeted Rs.75.0 billion, despite total bids reaching Rs.124.6 billion. For the three-month tenure, Rs.11.3 billion was accepted, with the weighted average yield dropping by 1bp to 7.57 percent. The six-month bill saw the largest uptake, with Rs.34.0 billion accepted at a steady weighted average yield of 7.89 percent. In the 12-month maturity, Rs.8.6 billion was accepted, with the weighted average yield remaining unchanged at 8.02 percent. 

On the external front, the Sri Lankan rupee appreciated marginally against the US dollar, closing at Rs.302.11/US dollar, compared to Rs.302.12/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.137.7 billion, from Rs.131.4 billion recorded the previous day.