The week’s secondary market activities unfolded with a consistent decline in yields across the board in expectation of a rate cut in the monetary policy meeting.
Across various tenors, including the 03M, 06M, and 01Yr T-bills, rates dipped below the 13.0% threshold. Notably, mid tenors such as 2028, 2029, and 2030 experienced a 15bps decline over the week. The market witnessed robust buying activities throughout the week but exhibited a momentary pause during the latter part of the week, characterized by limited activities and a slight decrease in buying appetite.
Post the T-Bill auction, yields recorded a massive decline across the board, following a sharp drop in the rates of 03M and 06M T-Bills, during Tuesday’s weekly treasury bill auction.
Meanwhile, at the T-Bill auction, primary markets yields edged down across maturities, while the overall market activities enticed renewed interest post auction.
Accordingly, the total offered T-Bill amount of LKR 130.0Bn was fully accepted with yields of 03M, 06M and 1 Year T-Bills further declining to 13.35% (-56bps), 13.41% (-42bps) and 12.78% (-14bps), respectively.
In the Forex market, LKR slightly appreciated against the USD with rupee being recorded at LKR 320.1 compared to LKR 321.2 recorded during the beginning of the week.
Courtesy: First Capital Research
