Moderate volumes and limited activity persist ahead of auction

By First Capital Research
The secondary market yield curve experienced limited activity and below moderate trading volumes yesterday. 
Some selling pressure emerged ahead of the T-Bill auction to be held on 5th Feburary, where the CBSL is scheduled to raise Rs. 180.0bn in T-Bills, from which Rs. 30.0bn is to be raised from the 91-day bill, Rs. 60.0bn is to be raised from the 182-day bill, and Rs. 90.0bn is to be raised from the 364-day bill. 
Amongst the traded maturities, notable trades were amongst the 2027, 2028, and 2031 maturities. On the short end of the curve, 01.05.27, and 15.10.27 traded at rates of 9.60%, and 9.80%, respectively. On the belly end of the curve, 15.03.28, and 01.05.28 traded at rates of 10.20%, 10.30%, respectively, while 01.07.28, and 15.10.28 traded between 10.40% - 10.43%. Similarly, the 01.12.31 maturity traded at a rate of 11.40%. 
On the external front, the LKR depreciated slightly against the USD closing at Rs. 297.64/USD compared to Rs. 297.58/USD recorded the previous day. 
CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.92bn yesterday. Overnight liquidity in the banking system expanded to Rs. 184.95bn from Rs. 161.96bn recorded the previous day.