Secondary market records thin volumes amid emerging selling pressure

By First Capital Research

The secondary market witnessed subdued levels of activity yesterday, resulting in thin volumes whilst the market swayed towards selling sentiment overall. 

Among the traded maturities, at the short end, the 01.05.2027 maturity traded at a yield of 8.70%. Further along the curve, the 15.06.2029 and 15.10.2029 maturities traded within the 9.80% to 10.00% range.

Lastly, the 01.03.2030 maturity traded at 10.00%, while the 15.12.2032 maturity traded at 10.85%.

The PDMO raised Rs. 82.1bn at yesterday’s scheduled T-Bond auction against an offered amount of Rs. 100.0bn. The funds were raised across 3 maturities, with Rs. 30.0bn through the 01.07.2030 bond, Rs. 33.6bn through the 01.06.2034 bond and Rs. 18.5bn across the 01.07.2037 bond. Weighted average yields stood at 10.12%, 11.16% and 11.19%, respectively. 

On the external front, the LKR appreciated against the USD, standing at Rs. 315.22/USD compared to LKR 315.45/USD compared to previous day. Liquidity in the banking system expanded to Rs. 239.96bn from Rs. 237.26bn recorded previously.