Quiet day at secondary market amid thin volumes

By First Capital Research

The secondary market witnessed a dreary session during the day amid ultrathin volumes.

Noteworthy transactions took place on the short to mid end of the curve; however, the yield curve remained unchanged. At the short end of the curve, the bond maturing on 01.08.2026 traded at a rate of 8.35 percent, followed by the 15.09.2029 maturity, which changed hands at 9.69 percent. Towards the mid-end, the 01.12.2031 tenure was transacted at a yield of 10.22 percent.

The Central Bank conducted its weekly T-bill auction yesterday, where a total of Rs.27.2 billion was accepted, despite total bids reaching Rs.102.4 billion.

The amount raised also fell short of the initially offered Rs.77.5 billion. A sum of Rs.4.4 billion was accepted for the threemonth maturity, Rs.18.7 billion for the sixmonth maturity and Rs.4.0 billion for the 12-month maturity. The weighted average yields across all three tenures remained unchanged.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.302.73/US dollar, compared to Rs.302.60/US dollar seen previously. Overnight liquidity in the banking system contracted to Rs.156.38 billion, from Rs.171.02 billion recorded the previous day.