Secondary market sees profit following three days of buying

By First Capital Research
The secondary market experienced a slight increase in rates amidst profit taking, leading to lower activity and moderate volumes in the secondary market. Meanwhile, the Central Bank announced a bond auction to be held on February 27, 2025, where the Central Bank is planning to raise Rs.27.5 billion from two maturities under 15.06.29 and 15.12.32.
Amongst the traded maturities, in the short end, the 01.05.27 and 15.10.27 maturity traded at 9.20 percent and 9.44 percent, respectively whilst the 15.02.28, 15.03.28, 01.05.28, 01.07.28, 01.09.28 and 15.10.28 bond maturities traded at the rates of 10.02 percent, 10.04 percent, 10.12 percent, 10.25 percent, 10.30 percent and 10.34 percent, respectively. Meanwhile, 15.05.30 and 15.10.30 maturities traded at the rates of 11.00 percent and 11.13 percent. Additionally, towards the long end, the 01.12.31, 01.10.32 and 01.06.33 bonds traded at the rates of 11.37 percent, 11.45 percent and 11.46 percent, respectively. 

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.296.48/US dollar, compared to Rs.296.63/US dollar recorded the previous day. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system contracted to Rs.150.6 billion, from Rs.153.2 billion recorded the previous day.