The market resonated with heightened investor activities, as investors embraced a strong bullish stance, asserting their dominance across the secondary market landscape. This resounding participation led to a significant downward trend in yields that persisted throughout the entire week.
This surge in buying sentiment precipitated a notable decline of 60-125bps across the yield curve, further fueled by a noticeable influx in foreign interest across the board. Notably, T-Bill rates plummeted by over 100bps, falling below the 11.0% threshold, whilst long tenors witnessed a decline in rates by over 60bps, dipping below the 13.0% mark.
Meanwhile, at the weekly T-Bill auction, CBSL fully accepted the total offered of Rs. 145.0Bn, whilst auction yields significantly edged down across the board by over 100bps. The 91-day maturity experienced higher reception with CBSL accepting Rs. 51.0Bn (surpassing the total offered of Rs. 40.0Bn) at a weighted average yield of 10.96% (-101bps), whilst 182-day and 364-day maturities were accepted at a weighted average yield of 11.07% (-113bps) and 10.73% (-127bps), respectively.
In the forex market, the Rupee appreciated against the USD with the rupee being recorded at Rs. 314.0 compared to Rs. 316.1 recorded during the beginning of the week.
Courtesy: First Capital Research (Feb 7, 2024)
