Profit taking emerges post auction

By First Capital Research

The secondary market yield curve witnessed increased profit taking yesterday, as the yield curve edged upwards, slightly. 

Additionally, the CBSL announced the issuance of Rs. 120.0bn in T-Bills, scheduled to be held on 24th Dec-24, where Rs. 30.0bn is to be raised for the 91-day bill, Rs. 40.0bn is to be raised for the 182-day bill, and Rs. 50.0bn is to be raised for the 364-day bill. 

Notable trades were primarily amongst the 2028, 2029, and 2031 maturities. On the belly end of the curve 15.02.28, 15.03.28, 01.05.28, 01.07.28, and 15.10.28 traded at rates of 10.15%, 10.15%, 10.26%, 10.35%, and 10.40%, respectively. Similarly, 15.09.29 traded at a rate of 10.75%, and 01.12.31 traded at a rate of 11.38%. 
Meanwhile, on the external front, the LKR depreciated against the USD, closing at Rs. 291.28/USD compared to Rs. 290.94/USD recorded the previous day. 

Conversely, the LKR appreciated against other major currencies such as the GBP, EUR, AUD, CNY, and JPY. CBSL holdings of government securities remained unchanged, closing at Rs. 2,515.62bn yesterday. Overnight liquidity in the banking system contracted to Rs. 186.66bn from Rs. 187.85bn recorded the previous day.