Market activity rises but yields hold their ground
- CNL Reporter
- February 15, 2025
- Business News
- Market activity rises but yields hold their ground
- 0 Comments
By First Capital Research
The Central Bank of Sri Lanka has announced a T-Bill auction totaling LKR 115.0Bn, scheduled for 19th Feb-25. CBSL aims to raise LKR 25.0Bn from 3M, LKR 60.0Bn from 6M, and LKR 30.0Bn from 12M T-Bills respectively. Today, the secondary market experienced a volatile trading session, marked by strong buying interest among market participants. As a result, secondary market trades witnessed high trading volumes, however the yield curve remained broadly unchanged.
Amongst the traded maturities, 2026 bond maturities traded in the range of 8.95% to 8.40% whilst 2027 bond maturities traded in the range of 9.45% to 9.40%. Investor interest predominantly focused on 2028 maturities. Accordingly, 15.02.28 traded in the range of 10.12% to 10.08%, 15.03.28 maturity traded in the range of 10.12% to 10.10%, 01.05.28 maturity traded in the range of 10.20% to 10.18%, 01.07.28 maturity in between 10.30% to 10.25% whilst 15.10.28 maturity in the range of 10.38% t0 10.35%. Furthermore, at the mid end, 15.09.29, 15.05.30 and 15.10.30 traded at 10.80%, 11.05% and 11.25% respectively. Meanwhile, 15.05,31, 01.07.32 and 01.10.32 traded at the rates of 11.43%, 11.48% and 11.485% respectively.
On the external front, the LKR was further appreciated against the USD, closing at LKR 296.56/USD compared to LKR 297.02/USD recorded the previous Tuesday. CBSL holdings of government securities remained unchanged, closing at LKR 2,511.92Bn today. Overnight liquidity in the banking system expanded to LKR 175.09Bn from LKR 171.55Bn recorded the previous day.
