Yield curve remains unchanged on back of moderate volumes

By First Capital Research

The secondary market witnessed moderate volumes during yesterday’s session, with few trades taking place on the belly end of the curve. 

On the back of this, several trades were recorded on the 15.02.28 and 15.03.28 maturity, which traded between 10.00 percent - 10.05 percent whilst 01.05.28, 01.07.28 and 15.10.28 saw trades between 10.10 percent - 10.39 percent. 

Moreover, trades were also observed on the 15.09.29 maturity at 10.73 percent whilst 15.10.30, 15.03.31 and 01.12.31 saw trades at 11.00 percent, 11.32 percent and 11.40 percent, respectively. 

Further, on Friday, the Central Bank of Sri Lanka announced a bond auction for March 12, 2025, planning to raise a total of Rs.210.0 billion, of which Rs.85.0 billion is planned to be raised from the 15.12.2029 maturity, whilst Rs.75.0 billion and Rs.50.0 billion, is expected to be raised from 15.12.2032 and 15.09.2034 maturities, respectively. 

Meanwhile, in line with the decrease in bill auction rates, AWPR came further down by 03bps during last week to 8.33 percent whilst private sector credit recorded its first decline after several months by Rs.4.6 billion to Rs.8,151.4 billion in January 2025.