The secondary market exhibited mixed sentiment, with modest trading observed in the short to mid tenors. The slight buying sentiment seen during the previous week toned down during the week as investors took a cautious approach in the light of ongoing political uncertainties, says First Capital Research.
In the primary market, the WAYR saw an uptick across the board with increased participation particularly noted in the 91-day and 182-day maturities.
As the week progressed, selling interest emerged on the short to mid-end of the curve. Amongst the traded maturities, 2026 tenors hovered in the range of 11.00%-11.20% respectively whilst, on the mid to long tenors, mixed activity was evident on 2028 maturities which traded at the highest of 13.05% during the week. Meanwhile, CBSL held its Rs. 152.0 bn weekly T-Bill auction.
CBSL fully subscribed to the total offered amount and there was a notable increase in bid reception across all maturities, whilst yields saw an upward trend during the day. 91-day maturity was accepted at a weighted average yield rate (WAYR) of
9.61% (+12bps), 182-day maturity was accepted at a WAYR of 9.94% (+10bps), whilst 364-day maturity was accepted at a WAYR of 10.03% (+2bps). In the forex market, the Rupee appreciated slightly against the greenback, recording at Rs. 299.2 on Aug 4, 2024, compared to Rs. 300.7 at the beginning of the week.
