Secondary market withstands yet another lethargic session

By First Capital Research

The secondary market witnessed mixed activity yesterday amid thin volumes prompting the quiet spell that has been evident across the last couple of days to persist. The number of significant trades that took place appeared rather scarce. 

Amongst the traded maturities, 15.09.2029 and 15.10.2029 traded between 9.45% to 9.50%. Moving ahead, 15.10.2030 maturity was seen changing hands at 9.81%. The 15.03.2031 maturity attracted some foreign buying during yesterday’s session and traded within the 10.07% to 10.11% range. 

The Central Bank of Sri Lanka concluded the second phase of the T-Bill auction held on Wednesday, through which an additional Rs. 56.9bn was raised at the weighted average yields of 7.62%, 7.91% and 8.03%. This brings the total amount raised through the Bill auction to approximately Rs. 76.8bn, which still falls behind the initial offer of Rs. 111.0bn. 

In the forex market, the LKR depreciated marginally against the greenback, closing at Rs. 301.77/USD, compared to the previously seen rate of Rs. 301.73/USD. 

Meanwhile, overnight liquidity in the banking system contracted to Rs. 86.2bn from the previously seen level of Rs. 93.5bn.