T-bill yields climb briefly at weekly auction while buying sentiment pushed yields down in secondary market

By First Capital Research

The secondary market witnessed some buying interest yesterday, following the announcement of the US–Iran peace talks and a temporary ceasefire, marking a downward movement in the yield curve.

Among the maturities traded, the 15.06.2029, 15.09.2029 and 15.12.2029 maturities traded between 9.85 percent-9.70 percent. 01.03.2030 and 01.10.2032 traded within the ranges of 9.85 percent - 9.80 percent and 10.65 percent-10.58 percent, respectively. 

As the yields edged downward in the short-mid-term maturities, 01.06.2033 and 01.11.2033 were dealt between 10.95 percent and 10.85 percent. 

At the T-bill auction, the weighted average yields edged up across all three tenures with the PDMO successfully raising the full offered amount of Rs.30.0 billion.

All three-month, six-month and 12-month maturities were accepted in full, amounting Rs.10.0 billion each. However, the weighted average yields slightly moved up to 7.95 percent (+15bps), 8.14 percent (+05bps) and 8.45 percent (+04bps), respectively. 

On the external front, the Sri Lankan rupee stayed steady at Rs.315.45/US dollar compared to the previous day. Liquidity in the banking system expanded to Rs.237.26 billion, from Rs.225.43 billion recorded previously.