Bullish sentiment continued to prevail in the secondary bond market for yet another week, with yields further decreasing.
Meanwhile, WAYR at the T-Bill auction further decelerated, with all offers being fully accepted.
The secondary market witnessed a broad decline amidst sustained buying sentiment. Initially, investor participation remained active, generating moderate volumes.
However, activities slowed slightly during midweek, reflecting mixed sentiment as investors awaited directions from the T-Bill auction.
Following the auction, a revitalised buying sentiment was observed across the board, particularly in liquid tenors such as 2026, 2027, and 2028, resulting in yields further decreasing by 15 bps to 25 bps.
Meanwhile, in the primary market, yields further plunged during the bill auction. The total offered T-Bill amount of Rs. 155.0 bn was fully accepted, with 60% being accepted from 06M T-Bill. Moreover, the weighted average yields of 03M, 06M, and 01Y T-Bills declined to 9.43% (-18bps), 9.76% (-13bps), and 9.90% (-09bps).
The CBSL announced the issuance of T-Bonds to the value of Rs. 70.0 bn through an auction on May 13. This issuance includes Rs. 15.0 bn, Rs. 25.0 bn, and Rs. 30.0 bn to be issued under the maturities of 01.05.28, 15.10.30, and 01.10.32. In the forex market, the Rupee depreciated against the USD with the rupee being recorded at Rs. 299.6 compared to Rs. 297.6 recorded during the beginning of the week. – First Capital Research
