The secondary market yield curve continued to budge higher mainly on the short to mid end of the curve as selling interest persisted yet another week on the back of rising concerns on the DDR. Meanwhile, at the weekly bill auction, 3m T-Bill was oversubscribed and the weighted average yields of the maturity edged down marginally after four weeks.
The secondary market displayed dull performance as investor interest was seen to be toned down while activities were limited and volumes remained thin. As the week progressed, selling pressure intensified mainly on 2026 and 2027 maturities which traded consecutively during the week within a range of 29.00%-30.50% and 27.75%-28.85%.
Meanwhile at the weekly Treasury Bill auction, CBSL accepted Rs. 132.4 bn from the offered Rs. 140.0 bn, with 74.5% of bids accepted from the 3m Bill. A slight drop in yields was also observed in the 3m Bill to 25.80% (-2bps) while 6M and 12m yields remained unchanged at 25.42% and 23.14% at the auction.
In the Forex market, Rs. appreciated further against the greenback with rupee being recorded at Rs. 318.1 compared to Rs. 320.0 recorded during the beginning of the week.
Courtesy: First Capital Research (May 10)