Bonds maintain buying momentum

By First Capital Research
The secondary market yield curve slightly edged down on the belly end of the curve, owing to the slight buying interest that was witnessed, on the mid-tenure.
Buying sentiment persisted into the second day, with the 01.07.2028 and 15.12.2028 maturities trading at 12.75 percent and 12.85 percent, respectively.
On the belly of the curve, 15.06.2029 and 15.09.2029 maturities recorded trades at 12.95 percent and 13.05 percent, respectively. Additionally, 15.05.2030 closed at 13.05 percent, while 01.10.2032 settled at 13.255 percent. However, the overall market continued to display limited activities and low volumes.
Furthermore, the Central Bank has announced a Treasury bill issuance totaling Rs.120.0 billion through an auction scheduled for August 21, 2024, slightly below the Rs.113.8 billon T-bill maturing for the week ending on August 23, 2024.
Meanwhile, out of the total auction, Rs.55.0 billion is to be raised from the 91-day maturity, Rs.35.0 billion is expected to be raised from the 182-day maturity while Rs.30.0 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.298.9 compared to the previous day’s closing of Rs.299.3. Meanwhile, overnight liquidity recorded at Rs.81.1 billion while CBSL Holdings remained unchanged at Rs.2,575.6 billion