A moderate trading session amidst a slight downtrend in yields

By First Capital Research
The secondary market drifted through a session where the volumes stood at moderate levels, with investor sentiment demonstrating a slight gravitation towards buying. 
Notable trades were executed within the short to mid end of the yield curve, of which a group of 2028 maturities, including 15.01.2028, 15.02.2028, 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028 and 15.12.2028, traded within a yield band of 8.95 percent to 9.02 percent. Moving along, the 15.06.2029 maturity traded at 9.38 percent, whilst the 15.12.2029 maturity traded at 9.48 percent. Approaching the belly end of the curve, the 2031 and 2032 segments registered some activity, with the 15.03.2031 bond trading at 9.85 percent, followed by the 15.12.2032 bond, which traded at a yield of 10.26 percent. 
The Central Bank conducted its weekly T-bill auction yesterday, at which total acceptances amounted to Rs.40.6 billion, falling short of the initial offer of Rs.48.0 billion, despite the total bids reaching Rs.80.2 billion. The three-month bill saw Rs.13.3 billion accepted against an offer of Rs.10.0 billion, while the six-month bill recorded acceptances of Rs.17.4 billion versus an offer of Rs.25.0 billion. The 12-month bill raised Rs.9.9 billion against an offer of Rs.13.0 billion. The weighted average yields across all tenures remained unchanged at 7.51 percent, 7.91 percent and 8.03 percent, respectively.
On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.309.54/US dollar, compared to Rs.309.26/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.79.9 million, from Rs.74.2 million recorded on the previous day.