By First Capital Research

The secondary market yield curve remained broadly unchanged amidst limited trading activity and thin trading volumes as market participants remained on the sidelines ahead of the upcoming Rs.60.0 billon worth bond auction announced yesterday. 

On the bond auction that will be taking place on August 13, 2024, the CBSL is expected to raise Rs. 45.0 billon from 15.06.29 and Rs.15.0 billion from 01.10.32, respectively. Meanwhile, among the traded maturities, notable trades were amongst the mid tenures, where 15.09.29 traded at rates of 12.65 percent. The secondary market mirrored previous trends with the ongoing rate increases amid continued uncertainty. 

On the external front, the Sri Lankan rupee appreciated slightly against the US dollar, closing at Rs.301.2/US dollar compared to Rs.301.9/US dollar recorded the previous day.

Additionally, the Sri Lankan rupee experienced slight depreciation against the AUD and GBP but appreciated against the EUR, JPY and CNY. Meanwhile, CBSL Holdings remained stagnant at Rs.2,575.6 billon yesterday for the 11th consecutive day. However, overnight liquidity in the banking system increased to Rs.107.4 billon from Rs.80.2 billon recorded the previous day.