CBSL accepts selective bids at bond auction

By First Capital Research

The secondary market endured another subdued trading session yesterday, resulting in a largely unchanged yield curve as activity remained minimal. 

Trading volumes were notably thin, with only a handful of maturities seeing movement. At the short end of the curve, the 01.05.2028 maturity traded at 8.90%, while the 15.10.2028 and 15.12.2028 maturities changed hands between 9.02% to 9.05%.

Meanwhile, the Central Bank of Sri Lanka concluded yesterday’s scheduled treasury bond auction, raising only a portion of the targeted Rs. 122.0bn. The initial plan aimed to raise Rs. 90.0bn through a 2030 maturity bond carrying a 9.75% coupon, and Rs. 32.0bn via a 2037 maturity bond with a 10.75% coupon. However, only Rs. 50.2bn was accepted for the 2030 bond, while the 2037 bond saw acceptances totalling Rs. 20.9bn. The weighted average yields were 9.77% for the 2030 bond and 11.08% for the 2037 bond.

In the forex market, the LKR depreciated against the greenback, closing at Rs. 301.95/USD, compared to the previously seen rate of Rs. 301.87/USD. Meanwhile, overnight liquidity in the banking system contracted to Rs. 90.2bn from the previously seen level of Rs. 102.9bn.