Low volumes persist ahead of T-bill auction

By First Capital Research

The secondary market yield curve witnessed a day of low volumes and limited activity as the dull sentiment persisted and investors adopted a wait-and-see approach ahead of the treasury bill auction to be held on January 22, 2025, where the Central Bank is scheduled to raise Rs.155.0 billion in T-bills. 

Amongst the traded maturities, notable trades were on the short to mid end of the curve, primarily amongst the 2027, 2028 and 2030 maturities. On the short end of the curve, 15.05.26 traded at a rate of 8.95 percent. Similarly, 15.01.27 and 01.05.27 traded at rates of 9.30 percent and 9.70 percent, respectively. On the belly end of the curve, 15.01.28, 15.03.28 and 01.05.28 traded at rates of 10.10 percent, 10.18 percent and 10.31 percent, respectively. The 15.10.30 maturity traded at a rate of 11.30 percent. Meanwhile, on the external front the Sri Lankan rupee depreciated against the US dollar, closing at Rs.296.66/US dollar, compared to Rs.296.51/US dollar recorded the previous day. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system expanded to Rs.134.69 billion, from Rs.126.30 billion recorded the previous day.