10 January 2025 06:27 am Views - 745
By First Capital Research
The Central Bank of Sri Lanka conducted its first T-Bond auction for the year, expecting to raise Rs. 190.0bn.
However, the auction saw a partial acceptance rate of 94.0% for the total amount offered. Specifically, only Rs. 39.3bn was accepted from the 01.11.2033 bond, where Rs. 50.0bn was initially expected to be raised.
In contrast, the 15.10.2028 and 15.10.2030 bonds saw full acceptance, with the total offered amounts of Rs. 60.0bn and Rs. 80.0bn respectively, being fully subscribed.
The weighted average yield rates for the 15.10.2028 and 15.10.2030 bonds were 10.42% and 11.23%, respectively, while the 01.11.2033 bond closed at a yield of 11.47%.
Post auction, there was an uptick in buying activity in the secondary market, particularly for mid-tenor bonds. Various maturities of the 2028 bond traded, with the 01.05.2028 bond hovering between 10.30%-10.23%, while the 01.07.2028 bond closed at 10.35%.
Additionally, the 15.10.2028 and 15.12.2028 bonds saw trades between 10.45%-10.37%, and 10.50%-10.45%, respectively.
During the day, the 15.09.2029 bond registered transactions around the 10.80% level, while the 15.05.2030 bond traded between 11.05% -11.00%. Finally, the 15.10.2030 bond closed transactions at 11.30%.
Meanwhile, on the external side, LKR slightly appreciated against the greenback closing at Rs. 296.09/USD compared to previous day’s closing of Rs. 296.15/USD.