Secondary market remains subdued amid light volumes

By First Capital Research

The secondary bond market remained largely inactive yesterday, continuing the subdued momentum observed in the previous session. 

Trading volumes were minimal, with only slight selling interest emerging across the curve.

Amongst the few trades that were carried out yesterday, at the short end of the yield curve, both 15.10.2029 and 15.12.2029 traded between 9.47% and 9.51%. Moving ahead of the yield curve, 01.11.2033 traded between 10.72% and 10.80%.

The Central Bank concluded its weekly Treasury Bill auction yesterday, fully raising the initially offered LKR 85.0Bn, with yields edging higher across all maturities. The 3M bill generated LKR 7.4Bn, with its weighted average yield rising by 2 bps to 7.62%. The 6M bill raised LKR 55.8Bn, recording a 7bps increase to 7.91%. Meanwhile, the 12M bill drew LKR 21.8Bn, with its yield climbing 5bps to 8.04%.

In the forex market, the LKR remained broadly unchanged against the greenback, closing at LKR 301.0/USD. Meanwhile, overnight liquidity in the banking system expanded to LKR 86.5Bn from the previously seen level of LKR 84.3Bn.