The week opened with lacklustre sentiment, amid less participation, as investors adopted a cautious stance, waiting for clarity on the interest rates movement ahead of the first T Bill and T-Bond auctions after the monetary policy meeting.
However, the secondary market witnessed a mild surge in buying interest, albeit amid thin trading volumes and limited activities for both the 3Yr and 5Yr tenors including the 01.06.26 and 01.08.26 maturities which were observed trading within the range of 15.00%-15.35% during the week.
CBSL announced a T-Bond auction worth Rs. 25.0Bn under the 01.08.2026 and 15.05.2030 maturities to be raised on October 12.
CBSL conducted its weekly Bill auction and accepted 95.2% of the total offered Rs. 90.0Bn, whilst auction yields edged down across the board. The 91-day maturity experienced higher reception with CBSL accepting Rs. 66.3Bn, above the total offered of Rs. 45.0Bn at 16.64% (-58Bps) whilst Rs. 16.8 bn was accepted from the 182-day maturity at a weighted average yield of 14.96% (-13Bps) and Rs. 2.7Bn accepted from the 364-day maturity at a weighted average yield of 13.10% (-06Bps).
In the Forex market, the Rupee remained broadly steady against the USD with rupee being recorded at Rs. 323.8 during the week.
Courtesy: First Capital Research (October 11, 2023)
