Auction yield on rise for 4th straight week

By First Capital Research
At the weekly T-bill auction held yesterday, only 90 percent of the total offered of Rs.155.0 billion was accepted whilst the weighted average yield rates were seen scaling higher for the fourth consecutive week. 
Accordingly, the three-month and six-month bills closed at 10.23 percent (+13bps) and 10.35 percent (+14bps), respectively while the one-year bill edged higher to 10.38 percent (+14bps). 
Post auction, the short end of the curve ticked slightly up, with bills surging higher. 
However, bonds enticed mixed interest during the day, with liquid tenures, 15.12.2026 observing trades at 11.35 percent while 01.05.2027 recorded trades at 11.80 percent. 
Meanwhile, 15.12.2028 and 01.07.2032 witnessed trades at 12.18 percent and 12.30 percent, respectively. On the external side, the Sri Lankan rupee continued to appreciate against the greenback and closed at Rs.304.0. 
The overnight liquidity registered at Rs.-37.3 billion while the Central Bank holdings remained stagnant at Rs.2,691.3 billion. In terms of maturities, the Central Bank has to settle Rs.87.5 billion worth T-bills for the week ending on March 29, 2024.