Volumes spike as buying activity amps up

By First Capital Research

The secondary market witnessed renewed buying interest across the yield curve, leading to a day of high trading volumes. At the short end of the curve, the 15.03.2028, 01.05.2028, 01.07.2028 and 01.09.2028 maturities traded within a yield band of 9.10 percent-9.25 percent. Within the 2029 segment, bonds bearing maturities dated 15.06.2029, 15.10.2029 and 15.12.2029 traded within 9.55 percent-9.63 percent.

Moving along the curve, the 01.07.2030 maturity traded at 9.75 percent while the 15.12.2032 maturity traded between 10.58 percent and 10.45 percent. Furthermore, the 01.11.2033 bond traded between 10.63 percent and 10.57 percent and as the long end of the curve approaches, the 15.09.2034 maturity traded between 10.75 percent and 10.70 percent. The Central Bank conducted its weekly T-bill auction yesterday, fully accepting the offered amount of Rs.57.0 billion against total bids of Rs.100.6 billion.

The three-month bill raised Rs.2.8 billion, falling short of its initial offer of Rs.12.8 billion, while the yield remained unchanged at 7.52 percent. The six-month bill exceeded its initial offer of Rs.30.0 billion, raising Rs.37.2 billion, with the yield edging up by 1 bp to 7.90 percent. Meanwhile, the 12-month bill raised Rs.16.9 billion, surpassing its initial offer of Rs.15.0 billion, as the yield increased by 2 bps to 8.04 percent. On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.304.2/US dollar, compared to Rs.304.0/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.154.8 billion, from Rs.144.3 billion recorded the previous day.