Treasury bill auction partially accepted as yields edge up across board

The Central Bank conducted its weekly Treasury bill auction yesterday and accepted a total of Rs.104.3 billion from the offered Rs.122.5 billion. 
The auction yields also edged up across the board, with 91-day maturity yield edging up by nine basis points (bps) to 9.87 percent, 182-day maturity yield inclining by nine bps to 9.95 percent and 364-day maturity yield up by three bps to 10.05 percent.  Furthermore, yesterday’s auction depicted a reversal in acceptance rate, with majority accepted from the 364-day maturity (Rs.39.6 billion accepted of Rs.40.0 billion offered). 

Meanwhile, the secondary market witnessed mixed activities during the day, trading moderate volumes, with more liquid 2026 and 2027 maturities trading in the range of 10.75 percent-10.95 percent and 11.85 percent-11.95 percent, respectively.  Few trades were also observed on the 01.07.28 maturity, with trades taking place between 12.15 percent and 12.20 percent whilst 15.05.30 maturity recorded trades at 12.30 percent. 
Meanwhile, overnight liquidity in the banking sector remained volatile during yesterday and marginally decline to negative Rs.40.0 billion whilst the Central Bank holdings of government securities kept unchanged at Rs.2.7 trillion. On the external front, the Sri Lankan rupee appreciated further against the greenback to Rs.310.75.