Mixed sentiment emerges ahead of T-Bill auction

By First Capital Research

The secondary market yield curve experienced mixed trading activity yesterday, with limited and thin trading volumes ahead of the CBSL’s weekly T-Bill auction. Investor interest focused on the 2027, 2028, and 2029 maturities, with the 01.05.27 T-bond trading at 9.75%. 

The 2028 maturities, specifically the 15.03.28 and 01.05.28 T-bonds, traded within a range of 10.16% to 10.33%. 
Meanwhile, at the mid-end of the curve, the 19.09.29 bond traded at 10.85%. Additionally, for the week ending 17th Jan-25, AWPR decreased by 9bps to 8.65% compared to the previous week. 

Meanwhile, on the external front the LKR depreciated against the USD closing at Rs. 296.85/USD compared to Rs. 296.66/USD recorded the previous day. Furthermore, the LKR also depreciated against other major currencies such as GBP, EUR, JPY, CNY, AND AUD. CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.92bn yesterday. 

Overnight liquidity in the banking system decreased to Rs. 122.45bn from Rs. 134.69bn recorded the previous day.