The secondary market opened the week with a nuanced sentiment, marked by interest across the 6-10Yr maturities, which slightly edged higher by 3bps over the week. Additionally, CBSL conducted a bond buyback auction, accepting RS. 10.0Bn for the 01.06.26 and 01.08.26 maturities at a weighted average of 13.72% and 13.73%.
CBSL announced Rs. 120.0 bn for the first bond auction of the year scheduled for 11th Jan-24. The auction aims to raise Rs. 45.0 Bn for the 01.02.26 maturity, while Rs. 45.0Bn and Rs. 30.0 Bn are anticipated to be raised for the 15.03.28 and 15.05.30 maturities .
The CBSL conducted its weekly treasury bill auction and accepted a total of Rs. 100.0 bn. Higher acceptance was observed on the 91-day and 182-day bill (accepting a total of Rs. 98.2Bn) whilst auction yields edged down to 14.27% (-18Bps) and 14.09% (-07Bps), respectively on the said maturities. The 364-day bill continued to witness limited acceptance (raised Rs. 1.7Bn cf. offered RS. 30.0Bn) as auction yields remained unchanged from the previous week at 12.93%. Post bill auction limited volumes were observed on the secondary market with 3M and the 6M bill traded at 13.75%.
In the Forex market, the Rupee depreciated against the USD with rupee being recorded at Rs. 322.6 compared to Rs. 322.2 recorded during the beginning of the week.
Courtesy: First Capital Research (Jan. 10, 2024)
