Investors adopted a cautious stance as the secondary market experienced a relatively dull week with limited activities last week, said First Capital Research in their Weekly Government Securities Market report.
At the beginning of the week the secondary market yield curve remained unchanged amidst a lack of activity in the market as Investors adopted a wait-and-see approach, reflecting dull sentiment and limited participation. However, towards the end of the week, the secondary market displayed a renewed buying interest on short to mid-tenors, leading the yield curve to decline amidst low trading volumes.
At the first weekly T-bill auction of the month, on Nov 6, the CBSL fully subscribed to the total offered amount of Rs. 175.0 bn, with auction yields increasing across the board for the second consecutive auction.
The 3M maturity was oversubscribed with CBSL accepting Rs. 92.4 bn (exceeding the total offered of Rs. 60.0 bn) at a WAYR of 9.37%, while the 6M and 1Yr maturities were undersubscribed. CBSL accepted Rs. 58.8 bn from the 6M maturity at a WAYR of 9.70% and Rs. 23.9 bn from the 1Yr bill at a WAYR of 9.95%.
In the forex market, the Rupee appreciated slightly against the greenback, recording Rs. 293.11 on Nov. 6 , compared to Rs. 293.72 at the beginning of the week.
