Secondary market slumbers, and ballots take the spotlight

By First Capital Research

The secondary bond market remained largely dormant yesterday, with trading activity tapering off significantly amid the conduct of Sri Lanka’s Local Government Elections. 

As a result, the yield curve exhibited little to no movement. Among the limited transactions, the 15.12.2029 maturity traded at 10.30%, while the 15.03.2031 maturity changed hands at 10.75%.

In the midst of this subdued backdrop, CBSL announced the details of an upcoming T-Bond auction slated for 9th May-25.The auction aims to raise a total of Rs. 80.0bn, through the issuance of a 2029 maturity and a 2033 maturity. 

Specifically, Rs. 35.0bn is targeted through the issuance of a bond maturing on 15.10.2029, which carries a coupon of 10.35%. In parallel, a further Rs. 45.0bn is expected to be mobilized via the 01.11.2033 maturity, offering a coupon of 9.00%.

In the foreign exchange market, the LKR depreciated marginally against the greenback, closing at Rs. 299.52/USD, compared to the previous day’s rate of 299.48/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 157.3bn from Rs. 128.5bn in the previous session.