Profit-taking continued, resulting in an uptick in yields

By First Capital Research
The secondary market yield curve saw a slight uptick on the short to mid end as market participants sought to realise gains from the recent bull run. 
In the early hours, there was a moderate buying sentiment for the 15.05.26 and 01.06.26 bonds, which traded at 10.50 percent. On the mid end, the 15.12.27, 15.02.28 and 15.12.28 bonds changed hands at 11.45 percent, 11.55 percent and 11.70 percent, respectively. As the day progressed, heightened selling interest led to a rise in interest rates across these maturities. The 15.12.27 bond traded at 11.55 percent, while the 15.02.28, 01.05.28, 01.07.28 and 15.12.28 bonds traded in a range of 11.70 percent to 11.80 percent. 

Additionally, the 15.05.30 bond displayed mixed sentiment, trading at 12.10 percent. Furthermore, the Central Bank has announced a Treasury bill issuance totalling Rs.85.0 billion through an auction scheduled for October 9, 2024, out of the total auction, Rs.40.0 billion is to be raised from 91-day maturity, Rs.35.0 billion is expected to be raised from 182-day maturity while Rs.10.0 billion is to be raised from 364-day maturity. 
On the external side, the Sri Lankan rupee slightly depreciated against the greenback closing at Rs.295.5. Meanwhile, the Central Bank liquidity started to build up from dollar purchases. Accordingly, overnight liquidity recorded at Rs.110.9 billion while the Central Bank holdings remained unchanged at Rs.2,515.6 billion.