Secondary market exerts a mixed tone with modest moves

By First Capital Research
The secondary market witnessed a mixed sentiment, with some selling pressure observed within the short-end of the curve, alongside some bid-side strength.
However, market activity was limited with moderate volumes.
At the short end of the curve, 15.01.2028, 01.07.2028 and 15.10.2028 traded between 9.10 percent and 9.15 percent. Forging ahead, 15.06.2029, 15.09.2029 and 15.12.2029 traded within the range of 9.49 percent and 9.55 percent. 
While there was some foreign buying on 01.07.2030, it changed hands between 9.65 percent and 9.70 percent. Towards the long-end of the curve, 15.09.2034 traded at 10.62 percent, while 15.06.2035 traded at 10.69 percent. 
The Central Bank conducted its weekly T-bill auction yesterday, raising Rs.55.6 billion, falling short of the offered amount of Rs.86.5 billion. The three-month bill raised Rs.6.0 billion, falling short of its initial offer of Rs.16.0 billion, while the yield remained unchanged at 7.52 percent. The six-month bill raised Rs.42.7 billion, higher than its initial offer of Rs.40.0 billion, with the yield unchanged at 7.91 percent. Meanwhile, the 12-month bill raised Rs.6.9 billion, falling below its initial offer of Rs.30.5 billion, as the yield remained unchanged at 8.03 percent. 
On the external front, the Sri Lankan rupee marginally depreciated against the US dollar, closing at Rs.307.91/US dollar, compared to Rs.307.86/USD seen previously. Overnight liquidity in the banking system expanded to Rs.91.4 billion, from Rs.79.3 billion recorded on the previous day.