Secondary market extends profit taking ahead of T-bond auction

By First Capital Research

The secondary market witnessed profit taking ahead of the T-bond auction scheduled for November 13, 2025.  The yield curve slightly edged up, amidst the low volumes experienced in the market.

Among the traded maturities, 15.02.2028 and 15.03.2028 traded between 8.90 percent-8.95 percent, while 01.05.2028 and 01.07.2028 traded between 8.95 percent-9.00 percent. 

The 15.06.2029 and 15.09.2029 maturities traded at 9.35 percent and 9.45 percent, respectively. Also, the 01.07.20230 maturity traded at 9.56 percent. 

Moreover, the 15.03.2031 maturity changed hands at 9.80 percent-9.85 percent, while the 01.07.2032 maturity traded between 10.30 percent-10.35 percent. Additionally, the 01.11.2033 maturity changed hands at 10.45 percent. The Central Bank conducted its weekly T-bill auction yesterday, raising Rs.43.3 billion, falling short of the offered amount of Rs.77.0 billion. The three-month bill raised Rs.3.5 billion, falling short of its initial offer of Rs.10.0 billion, while the yield remained unchanged at 7.52 percent. 

The six-month bill exceeded its initial offer of Rs.30.0 billion, raising Rs.36.0 billion, with the yield changing by 1bps to 7.91 percent. Meanwhile, the 12-month bill raised Rs.3.8 billion, falling below its initial offer of Rs.37.0 billion, as the yield remained unchanged at 8.04 percent.

On the external front, the Sri Lankan rupee appreciated marginally against the US dollar, closing at Rs.304.28/US dollar compared to Rs.304.39/US dollar seen previously.  Overnight liquidity in the banking system expanded to Rs.146.61 billion, from Rs.145.28 billion recorded on the previous day.