The secondary market yield curve remained stable as the investors maintained a cautious stance, largely staying on the sidelines.
Trading activity remained subdued throughout the day, with limited interest in longer-dated maturities, while the 2029 maturities attracted some interest.
Among the actively traded maturities, the 15.06.2029, 15.09.2029 and 15.10.2029 maturities traded within a yield range of 10.95 percent-11.05 percent. Further along the curve, the 15.10.2030 maturity traded at 11.40 percent, followed by the 15.12.2031 maturity at 11.70 percent and the 15.01.2033 maturity at 11.90 percent.
Yesterday, the PDMO concluded its weekly T-bill auction, raising Rs.66.1 billion, below the initial offer amount of Rs.90.0 billion. For the three-month T-bill, Rs.40.0 billion was initially offered, while Rs.40.2 billion was accepted. The weighted average yield rate (WAYR) increased by 4bps to 9.30 percent.
For the six-month T-bill, the PDMO accepted Rs.8.5 billion against an offered amount of Rs.30.0 billion, with the WAYR remaining unchanged at 9.44 percent. For the 12-month T-bill, Rs.17.5 billion was accepted, which was below the offered amount, while the WAYR remained unchanged at 9.95 percent. On the external front, the Sri Lankan rupee marginally depreciated against the US dollar, standing at Rs.331.05/US dollar, compared to Rs.330.98/US dollar seen earlier. Market liquidity in the banking system slightly expanded to Rs.414.63 billion, compared to Rs.400.82 billion recorded previously.
