Selling pressure emerges ahead of T-bond auction

By First Capital Research

The secondary market yield curve slightly edged up during yesterday’s session led by strong selling pressure ahead of the upcoming bond auction scheduled to take place next week. 

However, volumes were thin as investors boarded the sidelines and were also seen quoting wider two-way quotes on mid to long tenures. Accordingly, in the midst of selling pressure, 2027 maturities 01.05.2027 and 15.12.2027 registered trades at 11.45 percent and 11.75 percent, respectively. 

Further on the mid end, the 2028 maturities 15.02.2028 and 01.05.2028 inched higher to trade at 11.90 percent level while 01.07.2028 and 15.12.2028 closed transactions at 11.95 percent and 12.10 percent, respectively. 

Moreover, 2029 and 2030 tenures enticed trades with 15.09.2029 trading at 12.15 percent whilst 15.05.2030 traded at 12.30 percent. The CBSL has announced a T-bond auction worth Rs.200.0 billion scheduled to take place on July 30, 2024, where Rs.80.0 billion each will be raised from the 15.02.2028 and 15.10.2030 maturities while Rs.40.0 billion is expected to be raised from 01.06.2033 maturity. On the external side, the Sri Lankan rupee depreciated against the greenback closing at Rs.303.6 despite a short-lived appreciation observed yesterday.