The secondary market commenced the week with moderate volumes amidst notable buying interest mainly on short tenors influenced by the T-Bond auction held on the June 13, 2024.
Towards the week the market witnessed a subdued sentiment influenced by the inflated T-Bond auction yields. Towards the latter part of the week the market opted into a standstill, post the T-Bill auction held on the 19th Jun-24 where auction yields inclined by 36bps – 51bps. Maturities across the board experienced 2bps – 63bps uptick during the week.
The CBSL conducted its biggest T-Bond auction of the year, offering Rs. 295.0 bn from 15.10.27, 15.09.29 and 01.12.31 tenors, where the total amount offered was fully accepted. Furthermore, 15.10.27 was accepted at a weighted average yield of 10.69%, 15.09.29 was accepted at a WAYR of 11.78% alongside 01.12.31 at a WAYR of 12.03%.
The CBSL conducted the weekly T-Bill auction, raising Rs. 230.0 bn and accepted the total offered while weighted average yield rates saw a rise across the board for the third straight week.
Accordingly, 03M and 06M bills edged higher by 50bps and 51bps to close at 9.39% and 9.81%, respectively while 1Yr bill nudged up by 36bps to 9.90%.
In the forex market, the rupee slightly depreciated against the greenback recording at Rs. 304.4 compared to Rs. 303.7 recorded at the beginning of the week.
Courtesy: First Capital Research (June 19, 2024)
