Buying interest emerges ahead of T-Bond auction

By First Capital Research 

In yesterday’s weekly T-Bill auction, the weighted average yield rates remained broadly unchanged compared to previous week’s auction with only the 3M T-Bill declining by 1bps. 

Accordingly, the weighted average yield rates for the 3M, 6M, and 12M T-Bills stood at 7.52%, 7.86%, and 8.34%, respectively. 

Furthermore, CBSL offered a total of Rs. 165.5bn worth of T-Bills collectively, and this amount was fully subscribed. In the secondary market, the market participants shifted to a buying stance, resulting in moderate trading volumes, ahead of the Rs. 210.0bn worth T-Bond auction which is scheduled to be held today.

Amongst the traded maturities, notable trades were recorded in 2027, 2028, 2030 and 2031 bond maturities.  Accordingly, at the short end, 15.09.2027 bond traded between 9.55% to 9.45%. 

Whilst towards the belly end of the curve, 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 bond maturities traded in the range of 10.20% to 10.00%. 

Furthermore, 15.10.2028 and 15.12.2028 maturities traded in the range of 10.38% to 10.42% and 15.05.2030 maturity traded at 10.75% to 10.95%. 15.03.2031 traded between 11.35% to 11.32%.  

Additionally, the CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.9bn yesterday.