T-bill auction yields surge across board

By First Capital Research
In the secondary market, the yield curve experienced a slight uptick due to selling pressure. 
Yields on short-tenure securities, including 01.08.26, 15.12.26 and 15.12.27, were traded at 10.64 percent, 10.85 percent and 12.00 percent, respectively.
Meanwhile, mid to long-tenure securities also saw increased yields, with 01.05.28 at 12.48 percent, 01.07.28 at 12.52 percent, 15.12.28 at 12.60 percent and 15.05.30 at 12.97 percent.
In yesterday’s Central Bank T-bill auction, Rs.146.2 billon was accepted out of Rs.155.0 billon offered. The three-month bill saw a modest increase of eight basis points (bps) to 9.22 percent, while the six-month bill rose by 22bps to 9.56 percent. The one-year bill climbed 11bps, closing above the 10.0 percent mark at 10.06 percent.
The three-month bill was oversubscribed, whereas the six-month and one-year bills were undersubscribed. For the week ending August 09, 2024, the Central Bank has Rs.157.0 billon worth maturities to settle bills, while Rs.146.2 billon has been raised from primary auctions during the week. Meanwhile, the overnight liquidity for the day was recorded at Rs.88.9 billon, whilst the Central Bank holdings remained steady at Rs.2,575.62 billon.
In the forex market, the Sri Lankan rupee slightly depreciated against the US dollar yesterday and settled at Rs.302.3.