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By First Capital Research
The Central Bank of Sri Lanka (CBSL) started the new year by successfully conducting the first weekly T-bill auction for 2025, raising Rs.168.0 billion, with the total offered amount being fully accepted across all maturities.
Bids received for all the three maturities exceeded the total offered amount, with the six-month T-bill attracting the most interest.
Meanwhile, the weighted average yield rates declined across the board for the fourth consecutive week at yesterday’s T-bill auction. The three-month T-bill closed at 8.55 percent (-07bps), the six-month T-bill at 8.72 percent (-05bps) and the one-year T-bill at 8.94 percent (-02bps).
The secondary market yield curve experienced limited activity with investor interest predominantly focused on the 2028 bond maturities. Amongst the notable trades, the 15.03.2028 bond closed at 10.15 percent, while the 01.05.2028, 01.07.2028 and 15.10.28 maturities traded at 10.25 percent, 10.30 percent and 10.35 percent, respectively.
On the external front, the Sri Lankan rupee slightly depreciated against the US dollar and closed at Rs.293.0/US dollar. Meanwhile, the Sri Lankan rupee exhibited mixed performance against the other major currencies, weakening against the CNY, while strengthening against the GBP, JPY, AUD and EUR.
Meanwhile, overnight liquidity contracted at yesterday’s session to Rs.149.50 billion while the CBSL holdings continued to remain stagnant at Rs.2,515.62 billion.
