Subdued sentiment inverts secondary market

By First Capital Research

The secondary market displayed a subdued sentiment during yesterday backed by thin volumes and limited activity, influenced by the market opting into a wait and see approach stemming from the inflated auction yields at the recent T-Bond auction. 

Limited trades were recorded during the day whilst selling interest emerged on short tenors namely, 01.05.27 which traded at 10.60% and 15.09.29 which traded between the range of 11.82% - 11.88%. On the external side LKR slightly depreciated against the USD recording at Rs. 303.95. 

Overnight liquidity was recorded at Rs. 56.7bn and CBSL holdings declined to Rs. 2,609.1bn.
Furthermore, AWPR was recorded at 9.15% declining by 13bps for the week ending 14th Jun-24.