The secondary market experienced slim buying interest through the week while volumes were recorded at thin levels. Weighted average yields of primary bond auction and bill auction surged higher.
The week opened with the first bond auction after the IMF bailout where weighted average yields witnessed a surge across the maturities compared to the prevailing market rates in the secondary market. Accordingly, 01.05.28 maturity was accepted at 15.74% and 15.05.30 at 15.67%, while the total offered amount was fully accepted.
Slight buying interest surfaced in the secondary market predominantly on bond auction tenors 2028 and 2030. However, as the week progressed, activities subdued while volumes remained thin with persistent interest on 2028 and 2030 tenors which traded at 15.10% and 14.90% towards the end of the week.
At the weekly bill auction, yields ticked higher for the second continuous session while only 40% of the total offered was accepted. Accordingly, 3M weighted average yield was t 19.99% (+91bps), while 6M and 1Yr maturities surged to 17.77% (+82bps) and 14.35% (+31bps), respectively.
In the Forex market, the Rupee depreciated against the greenback with the rupee being recorded at Rs. 322.5 compared to Rs. 314.6 recorded during the beginning of the week.
Courtesy: First Capital Research (July 19, 2023)