After a persistent lackluster activity observed in the bond market, buying interest reinstated following the first bond auction after the monetary policy meeting resulted in a pickup in volumes to a moderate level during the week. WAYR dipped across the board at the weekly T-Bill auction with a steep decline witnessed on 3M T-Bill.
As the week commenced, buying appetite renewed with activities notably centered on 3yr tenor. As the week progressed, secondary market activities refreshed with market participants, both domestic and foreign investors displayed mixed sentiment reversing the weeks of lackluster activity post first bond auction for the month of Oct. Notable interest was witnessed on 2026 maturities throughout the week which traded in the range of 15.24%-15.10%.
CBSL conducted its first bond auction for the month of October, raising Rs. 25.0Bn and fully accepted the offered amount of Rs. 12.5 bn each from both tenors 01.08.2026 and 15.05.2030 at weighted average yield rates of 15.24% and 13.56%.
CBSL conducted its weekly Treasury Bill auction and continued to accept just a part of the offered quantity (accepting 87.2% of the total offered Rs. 65.0 bn), of which 91-day Bill saw full acceptance of Rs. 30.0bn, while recording the steepest decline during the auction with weighted average yields decreasing by 34bps to 16.30%. A slight decline in yields was also observed on the 91-day and 365-day maturities, which saw weighted average yields decline by 2bps and 8bps to 14.94% and 13.02%.
In the Forex market, the Rupee depreciated against the USD with rupee being recorded at Rs.324.1 compared to Rs. 323.8 recorded during the beginning of the week.
Courtesy: First Capital Research (Oct 19, 2023)
