The secondary market commenced the week with active selling interest on the back of low volumes, as the yield curve slightly edged up. Towards mid week the market experienced further interest on selling as profit taking emerged amid low volumes ahead of the T-Bill auction which was held on Oct 23, 2024.
Towards the latter part of the week the yield curve remained broadly unchanged signalling a mixed sentiment, with foreign buying visible on the short tenors mainly on 2026 maturities. Notably, the yield curve inclined across the board between 5bps-20bps during the week pivoting from the declined rates during the past weeks.
In the primary market, stability was noted across the board during today’s T-Bill auction. The total offered T-Bill amount of Rs. 125.0 bn was fully accepted, with 53% being accepted from the 03M T-Bill. Moreover, the weighted average yields of 3M, 6M, and 1Yr T-Bills remained stable at 9.32%, 9.65% and 9.95%, respectively.
In the forex market, the Rupee broadly remained unchanged against the USD, at Rs. 293.3 compared to Rs. 293 recorded at the beginning of the week as at Oct 16, 2024.
Courtesy: First Capital Research (Oct 23, 2024)
