Yields hold steady at weekly T-bill auction

By First Capital Research

The secondary bond market saw subdued performance, characterised by limited activity and thin trading volumes. 

Amongst the traded maturities, the 15.12.2026, 01.05.2027 and 15.12.2029 bond maturities were traded at the rates of 8.25 percent, 8.60 percent and 9.53 percent, respectively. 

Yesterday, the Central Bank accepted Rs.49.7 billion at its weekly T-bill auction, below the targeted Rs.74.0 billion, despite the total bids reaching Rs.119.2 billion. 

For the three-month tenure, Rs.4.5 billion was accepted from Rs.16.1 billion in bids, with the yield remaining unchanged at 7.58 percent. The six-month bill saw Rs.38.1 billion accepted, from Rs.66.6 billion in bids, as the weighted average yield held steady at 7.89 percent. In the 12-month maturity, Rs.7.0 billion was accepted from Rs.36.5 billion in bids, with the yield unchanged at 8.03 percent. 

In the forex market, the Sri Lankan rupee depreciated marginally against the greenback, closing at Rs.302.1/US dollar, compared to Rs.302.0/US dollar seen previously.  

Meanwhile, overnight liquidity in the banking system expanded to Rs.138.8 billion, from the previously seen level of Rs.127.4 billion.