Short tenures see modest selling pressure amid limited activity

By First Capital Research

The secondary market saw limited activity and thin trading volumes.  Moreover, some selling pressure was visible at the short-end of the curve. The PDMO conducted the weekly T-bill auction, at which the weighted average yields broadly stayed steady, amidst acceptances falling short of the offered amount. 

Within the 2028 segment, the 01.05.2028, 01.07.2028, 15.10.2028 and 15.12.2028 maturities traded between 9.10 percent-9.25 percent. Moving ahead, 15.09.2029, 15.10.2029 and 15.12.2029 traded within a narrow range of 9.57 percent-9.60 percent.  The 01.03.2030 maturity traded at 9.60 percent, while 15.05.2030 and 15.10.2030 changed hands between 9.66 percent-9.73 percent. 

Moreover, 15.03.2031 was dealt between 9.83 percent-9.90 percent and 01.06.2033 was traded at 10.50 percent.  At the T-bill auction, the PDMO raised only a portion, totalling to Rs.47.8 billion, compared to the initial offer of Rs.120.0 billion. 

However, the three-month raised Rs.20.7 billion, surpassing its offer of Rs.15.0 billion, while the six-month and 12-month maturities raised Rs.19.3 billion and Rs.7.8 billion, compared to the offered amounts of Rs.70.0 billion and Rs.35.0 billion, respectively.  The weighted average yields of the three-month and six-month maturities remained unchanged at 7.63 percent and 7.92 percent, respectively.  Nonetheless, the 12-month T-bill saw a slight decrease of 1bps to 8.23 percent. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.310.11/US dollar, compared to Rs.309.24/US dollar recorded the previous day.  Overnight liquidity in the banking system expanded to Rs.403.77 billion, from Rs.332.49 billion recorded previously.