Market holds its breath ahead of T-Bill auction

By First Capital Research 

The secondary market witnessed a subdued trading session yesterday, with limited trading activity and volumes ahead of the Rs. 152.0bn T-Bill auction scheduled for today, as uncertainty surrounding the upcoming election weighed on market sentiment. 

On the short end of the curve, 2027 maturities including 01.05.27 and 15.12.27 traded at 12.00% and 12.10%, respectively. Meanwhile, mid-tenor bonds, including 01.05.28, 01.07.28, and 15.12.28 traded at 12.65%, 12.85%, and 12.95%, respectively. 

Additionally, the 01.12.31 maturity traded at 13.20% during the day.

Furthermore, foreign holdings in government securities decreased by 3.4%WoW, registering at Rs. 42.1bn as of 29th August 2024. 

Consequently, the foreign holding percentage marginally decreased to 0.25% over the week. Notably, the overnight liquidity for the day significantly declined to Rs.  56.8bn compared to Monday’s closing of Rs. 101.5bn, whilst CBSL holdings remained steady at Rs. 2,555.6bn for the 08th consecutive session. 

Furthermore, in the forex market, the LKR appreciated against the USD for the 4th consecutive session, closing at Rs. 299.0 for the day. 

Moreover, for the year up to 30th August 2024, the LKR has appreciated against the USD by 7.9%, reflecting a strong overall performance despite recent fluctuations.