Steady momentum underpins secondary market activity

By First Capital Research
The secondary market continued to exhibit moderate activity levels, building on the pickup observed in the previous session. 
The weighted average yields at the T-bill auction remained broadly steady, with only the six-month bill dipping by 1bp.
Yesterday’s trades comprised of the 01.07.2028 maturity, which traded in the range of 9.70 percent to 9.75 percent and the 15.10.2028 maturity, which traded between 9.80 percent and 9.85 percent. 
Continuing along the short end, the 2029 maturities, including 15.06.2029 and 15.10.2029, were seen trading between 10.05 percent and 10.08 percent. 
Further along, the 15.05.2030 bond traded at 10.17 percent, followed by the 15.03.2031 bond at 10.27 percent. 
The 01.10.2032 maturity also registered activity, trading at 10.90 percent, while the 15.06.2034 maturity changed hands within the range of 11.25 percent to 11.31 percent.
The PDMO raised Rs.100.0 billion at yesterday’s T-bill auction, in line with the offered amount, despite the total bids reaching Rs.214.9 billion. Acceptances for the three-month and six-month tenures were marginally higher than the initial offer, at Rs.47.3 billion and Rs.27.1 billion, respectively, while the 12-month bill recorded an acceptance of Rs.25.6 billion against an offer of Rs.30.0 billion. 
The weighted average yields stood at 8.20 percent for the three-month bill, 8.24 percent for the six-month bill (down by 1bp) and 8.52 percent for the 12-month bill.
On the external front, the Sri Lankan rupee depreciated against the US dollar, standing at Rs.319.79/US dollar, compared to Rs.319.52/US dollar seen the previous day. The overnight liquidity in the banking system expanded to Rs.254.52 billion, from Rs.246.30 billion recorded previously.