The secondary market witnessed mixed investor interest over the week while participation continued to be limited due to the holiday season. Primary T-Bill auction yields tailed off for the second consecutive week.
In the beginning of the week, selling interest emerged following the outcome of the bond auction where activities mainly took place on 2024, 2025, 2026 and 2029 maturities. However, buying interest too was witnessed on short-term maturities during the week. As the week progressed, mixed interest was visible despite investor activity being slowed down amid low participation, a First Capital Research release stated.
At the weekly Bill auction, the offer of Rs. 85.0 bn, was fully accepted of which 79.2% was accepted from the 3M maturity. Auction yields continued on the previous trend and edged down lower with 3M maturity yield declining by 13 bps while 6M and 12M maturities declined by 3 bps and 2 bps.
Meanwhile post auction, selling interest was observed on May 1, 2024 and May 15, 2026 maturities which saw trades taking place between 32.07%-32.15% and 30.90%-31.10%. Mixed investor activity was observed on July 17, 2029 maturity which traded at 28.00%-28.25% on the back of limited activity and thin volumes.
In the Forex market, the Rupee broadly held steady against the greenback with rupee recording Rs. 363.2 over the week.