Auction yields taper down across board

By First Capital Research
The Central Bank conducted its weekly T-bill auction where weighted average yields declined across the board for the sixth consecutive week. 
The total offered amount of Rs.177.5 billion was fully accepted with the one-year bill being oversubscribed amidst higher reception. Accordingly, the weighted average yield rates declined by over 30 basis points (bps) across all maturities with the three-month closing at 9.04 percent (-39bps), whilst the six-month and one-year bills closing at 9.43 percent (-33bps) and 9.57 percent (-33bps), respectively. 

In the secondary market, during the early trading hours, the buying interest activated on the 15.05.2030 maturity, which traded at 11.50 percent. Moreover, on the short end, 15.12.2026 traded between 10.00 percent and 9.93 percent whilst 01.05.2027 and 15.09.2027 traded within a range of 10.25 percent and 10.20 percent, as the buying sentiment progressed. 
However, post auction, the investor interest slightly reversed with a perceptible mixed sentiment. Accordingly, on the 2028 tenure, 15.03.2028, 01.05.2028, 01.07.2028 and 15.12.2028 hovered in a range between 10.50 percent and 10.65 percent. 
Moreover, 01.10.2032 closed trades for the day between 11.80 percent and 11.85 percent. On the external market, the rupee depreciated against the US dollar for the third consecutive day, closing at Rs.300.8.