Bond yields rise under persistent selling pressure

By First Capital Research
The secondary market yield curve saw a modest increase from Thursday’s closing levels, particularly on the short to mid-tenures driven by the ongoing selling pressure as investors remained cautious amid political uncertainties. Short tenures, such as 01.06.26 and 15.12.26, traded within the range of 11.15 percent-11.30 percent. Similarly, bonds maturing in 2027, including 01.05.27, 15.09.27 and 15.10.27, changed hands between 12.10 percent and 12.40 percent. Maturities for 2028, including the 15.02.28, 01.05.28, 01.07.28 and 15.12.28, were seen trading between 12.70 percent -13.00 percent. Heavy selling pressure was evident in the 15.07.29 bond, which traded between 13.25 percent and 13.28 percent and 01.12.31 bond, which traded at 13.35 percent. However, the overall market continued to display limited activities and low volumes. Furthermore, the Central Bank has announced a Treasury bill issuance totalling Rs.180.0 billion through an auction scheduled for September 11, 2024, slightly above the Rs.171.0 billion T-bill maturing for the week ending September 13, 2024.
Meanwhile, out of the total auction, Rs.60.0 billion is to be raised from 91-day maturity, Rs.90.0 billion is expected to be raised from 182-day maturity while Rs.30.0 billion is to be raised from 364-day maturity. On the external side, the Sri Lankan rupee remained flat against the greenback closing at Rs.298.9.