Bond yields tick higher on extended selling

By First Capital Research
Concluding the week, the secondary market yield curve slightly edged up across the board amidst slight selling interest while the overall market witnessed low volumes and limited activities. In the midst of slight selling interest, the 15.12.2027 maturity changed hands in the range of 11.30 percent-11.35 percent. Additionally, the tenures maturing in 2028, such as 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028, changed hands at yields ranging between 11.65 percent-11.80 percent. The selling interest extended to the longer end of the curve as well, with the 15.05.2030 maturity trading at a yield of 12.15 percent. Furthermore, the Central Bank has announced a Treasury bill issuance totalling Rs.125.0 billion through an auction scheduled for October 23, 2024, out of the total auction, Rs.40.0 billion is to be raised from the 91-day maturity, Rs.42.5 billion is expected to be raised from the 182-day maturity while Rs.42.5 billion is to be raised from the 364-day maturity. On the external side, the Sri Lankan rupee appreciated against the greenback, closing at Rs.293.0. Meanwhile, overnight liquidity recorded at Rs.139.10 billion while the Central Bank holdings remained unchanged at Rs.2,515.6 billion.