Yield curve edges higher ahead of T-bill and T-bond auction

By First Capital Research 

The secondary market yield curve edged higher across the board, driven by thin trading volumes and profit-taking activity as investors adopted a wait-and-see approach ahead of the upcoming T-bill and T-bond auctions. 
After the morning session, the yield curve saw a slight uptick as investors continued to lock in profits from the previous day. 

Meanwhile, CBSL is expecting raise Rs. 85.0bn from three maturities through a T-bill auction which is scheduled for today.

Additionally, CBSL announced Rs. 95.0bn worth T-bond auction today which will be held on 11th Oct 24, expecting to raise Rs. 70.0bn and Rs. 25.0bn through two maturities. 

Among the traded maturities, short tenor 15.12.27 traded at 11.55% while towards the belly end of the curve, 15.02.28 traded between 11.70% -11.80%, 01.05.28 traded between 11.80% -11.85% and 01.07.28, 15.12.28 and 15.09.29 traded at 11.85%, 11.90% and 12.12% respectively. 

On the external front LKR slightly depreciated against the green back recording at Rs. 293.55 compared to the previous day which was recorded at Rs. 293.78. 

Notably, the overnight liquidity for the day significantly declined to Rs. 75.23bn compared to the previous day, whilst CBSL holdings of government securities remained stagnant at Rs. 2,515.6bn for the 15th consecutive session.