Thin volumes persist ahead of T-bill auction

By First Capital Research 

The secondary market remained subdued yesterday, closing the session with thin volumes and limited activity ahead of CBSL’s weekly T-Bill auction today, which targets to raise Rs. 75.0bn. Market sentiment mirrored that of the previous day, while the yield curve remained unchanged.

Among the few trades that took place yesterday, the 15.09.2029 maturity traded at 9.52%, while further along the curve, the 15.06.2035 maturity traded at 10.92%.

On the external front, the LKR depreciated against the USD closing at Rs. 302.1/USD compared to Rs. 301.8/USD recorded the previous day. CBSL holdings of government securities remained unchanged, closing at Rs. 2,508.9bn yesterday. Overnight liquidity in the banking system contracted to Rs. 131.4bn from Rs. 147.9bn recorded the previous day.