T-bill auction yields hold steady as yield curve remains unchanged

By First Capital Research

The secondary market yield curve saw limited activity, with moderate volumes and subdued participation, resulting in a broadly unchanged curve. 

Among the traded maturities, 15.09.2029 traded at 9.70 percent, while both 15.12.2029 and 01.03.2030 traded at 9.75 percent. 

Meanwhile, 15.03.2031 and 01.11.2033 changed hands at 10.00 percent and 10.65 percent, respectively. 

At the weekly T-bill auction, the PDMO raised Rs.60.8 billion, falling short of the total offered amount of Rs.120.0 billion. The three-month, six-month and 12-month maturities raised Rs.26.3 billion, Rs.12.8 billion and Rs.21.7 billion, compared to the initial offered amounts of Rs.45.0 billion, Rs.50.0 billion and Rs.25.0 billion, respectively. 

Meanwhile, weighted average yields across all three tenures remained unchanged at 7.61 percent, 7.91 percent and 8.23 percent, respectively. 

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.311.31/US dollar, compared to Rs.311.38/US dollar recorded the previous day. 

Liquidity in the banking system contracted marginally to Rs.341.2 billion, from Rs.348.2 billion recorded previously.