Auction yields edge up after 8 weeks

By First Capital Research
At the weekly T-bill auction held yesterday, the Central Bank fully accepted the total offered amount of Rs.235.0 billion, with the three-month and six-month bills oversubscribed amidst higher reception whilst the one-year bill was undersubscribed. 
Reversing the persistent downtick in auction yields, the weighted average yield rate of three months and one year saw an increase after eight weeks. 
Accordingly, the three-month WAYR closed at 8.70 percent (+08 basis points (bps)) and the one-year bill closed at 9.27 percent (+09bps) while the six-month bill remained unchanged at 9.04 percent. 
Meanwhile, following the outcome of the primary auction, the secondary market witnessed selling interest across short to mid tenures amidst thin volumes. Accordingly, on the short end, 15.12.2026 recorded trades at 9.85 percent. On the 2028 tenure, 15.03.2028, 01.05.2028, 01.07.2028 and 15.12.2028 hovered between 10.80 percent and 11.00 percent. 
On the mid tenures, 15.10.2030 closed trades at 11.75 percent whilst 01.10.2032 enticed trades in the range of 11.90 percent and 11.95 percent. 
Meanwhile, on the external side, the Sri Lankan rupee depreciated against the greenback closing at Rs.302.2.