Buying appetite continues ahead of bill auction

By First Capital Research
The secondary market yield curve continued to display buying sentiment at the short-end during the day, echoing the trend from the last session, as the investors boarded the sidelines ahead of the Rs.122.5 billion worth bill auction scheduled for February 28, 2024.
Interest was centered on liquid maturities, where 01.02.26, 01.06.26, 01.08.26 and 15.01.27 traded between 10.80 percent and 11.10 percent, whilst 15.09.27 and 01.05.27 hovered in the range of 12.00 percent and 11.80 percent. 

Meanwhile, the 2028 maturities, including 15.12.28, 01.09.28 and 01.07.28, registered trades between 12.25 percent and 12.15 percent. 
Moreover, the weekly average weighted prime lending rate (AWPR) for the week ending February 22, 2024 decreased by 11 basis points to 11.50 percent compared to the previous week. 
Further, the foreign holding of government securities for the week ending February 22, 2024 closed at Rs.99.2 billion, recording a decline of Rs.4.4 billion (-4.3 percent week-on-week). 
Moreover, the Central Bank holdings reduced to Rs.2,715.6 billion after remaining unchanged at Rs.2,735.6 billion for nearly two weeks.

On the external side, the Sri Lankan rupee continued to appreciate against the US dollar, closing at Rs.311.1 for the day, compared to the previous closing of Rs.311.7.