The secondary market saw a dull week as participation remained limited amidst the April-holiday season, with no significant change on the yield curve. Weighted average yield rates at the weekly T-Bill auction saw a slight dip across the board.
The week opened on a dull note, with the holiday season commencing whilst participation weakened resulting in ultra thin volumes. However, amidst limited activities, slight interest was observed on the liquid maturities 2026, 2027 which saw an uptick of 30bps and 5bps, respectively.
Towards the end of the week, although holiday season was coming to an end, participation continued to be muted as investors took a cautious stance, considering the recent developments and uncertainty surrounding bondholder negotiations.
At the weekly T-Bill auction, CBSL fully accepted the total offered Rs. 78.0 bn. CBSL accepted Rs. 30.0Bn from the 91-day bill at 10.03% (-07bps) whilst Rs. 30.0Bn was accepted from the 182-day bill at 10.22% (-05bps). However, only part of the offered was accepted from the 364-day bill, accepting Rs. 18.0Bn from the offered Rs. 23.0Bn at 10.23% (-04bps).
In the forex market, Rs. slightly depreciated against the USD with the rupee being recorded at Rs. 299.8 compared to Rs. 298.7 recorded during the beginning of the week.
Courtesy: First Capital Research ( April 17, 2024)
