Subdued secondary market with controlled selling pressure

By First Capital Research

The secondary market maintained its subdued momentum yesterday, characterised by low trading volumes and moderate selling being observed in the 2028 maturities.

Among the traded securities, at the short end of the curve, the 01.05.2027 maturity was transacted at a yield of 8.77 percent. Within the 2028 segment, the 15.02.2028 maturity traded at 9.20 percent, 15.03.2028 at 9.25 percent and 15.12.2028 maturity at 9.33 percent.

The Central Bank conducted its weekly T-bill auction yesterday, where a total of Rs.39.6 billion was accepted, despite total bids reaching Rs.108.6 billion. The amount raised also fell short of the initially offered Rs.70.0 billion. A sum of Rs.4.5 billion was accepted for the three-month maturity, Rs.30.8 billion for the six-month maturity and Rs.4.4 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.303.1/US dollar, compared to Rs.303.0/US dollar seen previously. Overnight liquidity in the banking system contracted slightly to Rs.119.1 billion, from Rs.120.1 billion recorded the previous day.