Auction yields rest amidst renewed buying interest

By First Capital Research
The secondary market commenced the day and witnessed slower momentum continuing the trend from previous sessions, longing for the T-bill auction outcome, which was scheduled for yesterday.
However, the market regained buying interest post the T-bill auction, as the liquid maturities 2026 and 2028 enticed trades during the day namely, the 01.06.26 maturity traded at 10.70 percent, 01.08.26 traded at 10.80 percent, 15.02.28 and 15.03.28 traded at 11.85 percent whilst 01.05.28 traded at 11.90 percent. 
Moreover, the 15.09.29 tenure traded at 12.05 percent and 01.12.31 traded at 12.15 percent.
Meanwhile, at the Rs.190.0 billion T-bill auction that was held yesterday, the Central Bank only accepted Rs.175.7 billion whilst the auction yields remained stagnant after four consecutive sessions of upward movement. 
Notably, the 91-day maturity was over accepted by 1.3 times, as it was accepted at a weighted average yield rate (WAYR) of 10.07 percent, 182 day and the 364-day maturities were accepted at a WAYR of 10.19 percent and 10.31 percent, respectively. 
Overnight liquidity improved to Rs.95.4 billion, compared to Rs.47.1 billion, which was recorded the previous day, whilst CBSL Holdings remained stagnant at Rs.2,595.6 billion for the fourth consecutive day.