Secondary market stays quiet as T-Bill yields tick up at the weekly auction

By First Capital Research

Amidst the rise in yields at the weekly T-Bill auction that took place yesterday, the secondary market activity was limited with thin trading volumes. 

Over the short-term, 01.05.2027 and 15.10.2028 maturities were traded at 8.90% and 9.80% respectively, while in the long run, 15.06.2035 was dealt at 11.00%.

At the T-Bill auction, the PDMO raised only a portion totaling Rs. 32.5bn, falling short of the offer of Rs. 90.0bn. 3M, 6M and 12M maturities raised Rs. 10.1bn, Rs. 16.2bn and Rs. 6.2bn, while the weighted average yields edged up by 16bps, 14bps and 9bps to 7.80%, 8.09% and 8.41% respectively. 

On the external front, the LKR depreciated against the USD, closing at Rs. 315.19/USD compared to Rs. 314.88/USD recorded previously. Liquidity in the banking system expanded to Rs. 322.95bn from Rs. 313.86bn recorded previously.