Yield curve holds steady amid buying interest

By First Capital Research 

The secondary market yield curve saw moderate trading volumes and activity yesterday, with further buying interest observed in 2028 and 2029 maturities. Overall, trading remained steady amid moderate participation.

Amongst the 2028 maturities, the 15.01.2028 maturity traded at 9.00 percent, while the 15.02.2028 and 15.03.2028 maturities were traded at 9.04 percent and 9.05 percent, respectively.  The 2029 maturities also saw notable activity, with the 15.06.2029 and 15.09.2029 bonds trading at 9.50 percent and 9.54 percent. Additionally, the 15.10.2029 maturity changed hands at 9.55 percent, and the 15.12.2032 maturity traded at 10.47 percent.

The CBSL conducted its weekly T-Bill auction yesterday, raising Rs. 66.9bn, falling short of the offered amount of Rs. 77.5bn.

The 3M bill raised Rs. 4.7bn, falling short of its initial offer of Rs. 7.5bn, while the yield remained unchanged at 7.52 percent. 

The 6M bill exceeded its initial offer of Rs. 30.0bn, raising Rs. 39.7bn, with the yield remaining unchanged at 7.90 percent. Meanwhile, the 12M bill raised Rs. 22.5bn, falling below its initial offer of Rs. 40.0bn, as the yield remained unchanged at 8.04%.

On the external front, the LKR depreciated against the USD, closing at Rs. 304.53/USD compared to Rs. 304.49/USD seen previously. Overnight liquidity in the banking system expanded to Rs. 133.2bn from Rs. 105.2bn recorded on the previous day.