T-bill auction yields decline across board

By First Capital Research

Ahead of today’s T-bond auction, the secondary market witnessed slight buying interest amid limited activity and thin trading volumes. 

Within the 2028 maturities, 15.02.2028, 01.05.2028 and 15.10.2028 traded in the range of 8.98 percent to 9.12 percent. 

Further along the yield curve, 15.09.2029, 15.10.2029 and 15.12.2029 traded between 9.45 percent and 9.48 percent. 

The 01.03.2030 maturity changed hands at 9.55 percent, while 15.06.2035 was traded at 10.80 percent. 

The Public Debt Management Office completed its weekly T-bill auction, securing Rs.67.9 billion while accepting only a portion of the total amount offered. The weighted average yields inched down across all tenures with that of the three-month bill inching down by 3bps to settle at 7.63 percent while that of the six-month and 12-month tenures dipped by 7bps and 3bps, settling at 7.92 percent and 8.24 percent, respectively. 

On the external front, the Sri Lankan rupee slightly appreciated against the US dollar, closing at Rs.309.37/US dollar, compared to Rs.309.38/US dollar recorded the previous day. 

Overnight liquidity in the banking system expanded to dollar Rs.322.93 billion, from dollar Rs.297.94 billion recorded previously.