The week opened with positive buying sentiment on the back of clarification on DDR strategies which were published earlier during the week. Hence, the secondary market yields edged marginally lower while weighted average yields at the weekly T-Bill auction, took a breather note and remained unchanged.
The secondary market displayed selling interest during mid-week on short to mid tenor maturities, as investors expected the government to unveil the DDO plan by the end of June. However, as the week progressed, the market remained stagnant as investors refrained from quoting and took a wait and see approach expecting DDO to be finalised during the week.
At the weekly Treasury Bill auction, yields remained unchanged with 3M, 6M and 1Yr bills closing at 23.00%, 19.49% and 16.99%. Only 43% of the Rs. 130.0 bn offered was accepted with 36.2% being accepted for1 Yr Bills.
In the Forex market, the Rupee slightly appreciated against the greenback with the rupee being recorded at Rs. 308.1 compared to Rs. 306.1 recorded during the beginning of the week.
Courtesy: First Capital Research (June 27, 2023)