By First Capital Research
The secondary market experienced limited activity with moderate trading volumes.
Ahead of the T-bond auction, the selling interest was observed in the short to mid-end of the yield curve, with the 15.12.2029 maturity trading at 11.00 percent, while the 01.08.2030 and 15.10.2030 maturities traded in the 11.20 percent to 11.30 percent range.
Following the auction, the buying interest shifted towards the newly auctioned T-bond maturities, with the 15.10.2030 maturity trading in the 11.40 percent to11.45 percent range, while the 15.08.2036 maturity traded at 12.00 percent.
Trading activity was primarily driven by the primary dealers and banking sector participants.
At the T-bond auction held yesterday, the PDMO successfully raised the full amount offered. Of the total accepted, Rs.45.0 billion was raised through the 2030 maturity and Rs.15.0 billion through the 2035 maturity, at weighted average yields of 11.44 percent and 11.88 percent, respectively.
On the external front, the Sri Lankan rupee depreciated against the US dollar, standing at Rs.337.04/US dollar, compared to Rs.336.57/US dollar seen earlier. Liquidity in the banking system slightly contracted to Rs.61.62 billion from Rs.65.36 billion recorded previously.
Popular maturities traded during the day:
15.12.2029: +5bps
01.08.2030: +8bps
15.10.2030: +14bps
15.08.2036: (Unchanged)
