The secondary market displayed dull performance during the week as investor interest was seen to be toned down while activities were limited and volumes remained thin ahead of the weekly Bond and Bill auctions.
As the week progressed, mixed sentiment was witnessed on 2026 and 2028 maturities which traded consecutively during the week with a gradual uptick in foreign buying interest in the latter ahead of the Bond auction.
The secondary market yield curve declined by 38bps and 100bps on the traded maturities, while the overall yield curve remained stable.
CBSL conducted its Rs. 90.0 bn Treasury Bond auction and fully accepted the offered Rs. 50.0 bn from 01.06.26 and Rs. 40.0 bn from 01.05.28 maturities at weighted averages of 15.58% and 14.64%.
At the weekly T-Bill auction, total offered amount of Rs. 160.0 bn was fully accepted with 03M and 06M tenors experiencing higher reception with an acceptance recorded above the total offered for each maturity. Meanwhile, auction yields edged down registering a modest dip across the board. Accordingly, weighted average yield of 03M closed at 18.16% (-30bps) while 06M and 1Yr tenors budged down to 15.19% (-17bps) and 13.35% (-23bps).
In the Forex market, the Rupee broadly remained stable with rupee being recorded at Rs. 322.4 compared to Rs. 322.0 recorded during the beginning of the week.
Courtesy: First Capital Research ( Sept 13, 2023)
