Modest selling pressure builds ahead of T-bond auction

By First Capital Research
Preceding the T-bond auction today, the secondary market registered mild selling pressure. 
The yield curve rose approximately by 5-10bps as a result, particularly across the short to the belly end of the curve. However, the volumes remained low during yesterday’s session.
As the trades were clustered towards the middle-end of the yield curve, the 15.06.2029 maturity traded at 9.65 percent, both 15.09.2029 and 15.10.2029 traded at 9.70 percent while 15.12.2029 traded higher at 9.75 percent. 
Additionally, the 01.07.2030 and 15.03.2031 maturities changed hands at 9.80 percent and 10.00 percent, respectively.
On the external front, the Sri Lankan rupee remained flat against the US dollar at Rs.309.71/US dollar compared to the previous day. Overnight liquidity in the banking system marginally expanded to Rs.118.6 million, from Rs.111.7 million recorded previously.