Bond auction fully accepted as yields come down across all maturities

By First Capital Research
Prior to the bond auction scheduled yesterday, the secondary market continued to see the buying interest with activity centred across the belly-end of the curve. 
Thus, the 15.05.26, 01.08.26, 15.12.26 maturities saw trades between 10.45 percent and 10.25 percent whilst 15.09.27 recorded trades at 10.90 percent. 
Moreover, activities were also visible on 15.03.28, 01.05.28, 01.07.28 and 15.12.28 between 11.25 percent and 11.15 percent. 
Meanwhile, the Central Bank conducted an Rs.70.0 billion bond auction and accepted the total offered, with yields declining across all maturities. Therefore, Rs.15.0 billion was accepted from the 01.05.28 maturity, at 11.01 percent, whilst Rs.25.0 billion and Rs.30.0 billion were raised from the 15.10.30 and 01.10.32 maturities, at 11.85 percent and 12.17 percent, respectively. 

Post-bond auction, positive buying sentiment continued after the yields came down at the auction with the 01.08.26 and 15.12.26 maturities trading between 10.15 percent and 10.12 percent whilst the 15.03.28, 01.05.28, 01.07.28 and 15.12.28 maturities traded between 11.00 percent and 10.90 percent. 
Moreover, several activities were observed on the 15.05.30 maturity between 11.75 percent and 11.60 percent whilst the 01.10.32 maturity recorded trades at 12.00 percent. 
Meanwhile, on the external front, the Sri Lankan rupee depreciated against the greenback as the mid-rate published by the Central Bank stood at Rs.298.79/dollar.