Robust activity in secondary market ahead of T-bond auction

By First Capital Research

The secondary market experienced elevated trading volumes and heightened activity in the lead-up to yesterday’s T-bond auction. 

Notable trades included the 15.10.2028 maturity trading at 8.95% and both the 15.09.2029 and 15.10.2029 maturities trading at 9.45%. Meanwhile, moving ahead on the yield curve, 01.06.2033 maturity was seen changing hands at the rate of 10.70%.

The CBSL conducted a T-bond auction, raising LKR 142.2Bn, 28.9% below the initially offered amount of LKR 200.0Bn. This amount was raised through the issuance of 2029, 2033 and 2034 maturities which registered weighted average yields of 9.46%, 10.67% and 10.81%, respectively. 

In the forex market, the LKR appreciated marginally against the greenback, closing at LKR 300.71/USD, compared to the previously seen rate of 300.91/USD. Meanwhile, overnight liquidity in the banking system expanded to LKR 109.7Bn, from LKR 95.4Bn in the previous session.