Secondary market stable amid selective selling

By First Capital Research

The secondary market saw light selling pressure yesterday, with trading volumes remaining moderate. 

Activity was largely focused on the 2028 maturities. Despite the slight uptick in selling, the yield curve held steady overall.

At the shorter end of the curve, the 15.03.2028 maturity traded at 8.80 percent, 01.05.2028 at 8.84 percent, 01.07.2028 at 8.88 percent and 15.09.2028 at 9.40 percent. Moving further along the curve, the 01.11.2033 maturity traded at 10.70 percent.

The Central Bank concluded its weekly treasury bill auction yesterday, fully raising the initially offered amount of Rs.78.5 billion. The three-month bill generated Rs.13.1 billion, with its weighted average yield decreasing by 1bp to 7.59 percent. The six-month bill raised Rs.24.9 billion, with its weighted average yield decreasing by 1bp to 7.89 percent. Meanwhile, the 12-month bill drew Rs.40.5 billion, with yield remaining unchanged at 8.03 percent.

In the forex market, the Sri Lankan rupee depreciated against the greenback, closing at Rs.301.5/US dollar, compared to the previously seen rate of Rs.301.2/US dollar. 

Meanwhile, overnight liquidity in the banking system contracted to Rs.105.9 billion, from the previously seen level of Rs.116.0 billion.