Final T-Bond auction for 2025 concludes amid thin trading volumes

The secondary market recorded moderate activity during the session yesterday, although volumes remained thin amid a largely unchanged yield curve, with a mild upward push observed at the belly. 

In this context, the CBSL conducted its final T-Bond auction for the year, where total acceptances fell short of the initial offer, despite increased bids.

Trading activity was primarily concentrated at the short end of the yield curve, with notable transactions across 2028 maturities. The 01.05.2028 maturity traded at a yield of 9.10%, followed by the 01.07.2028 bond at 9.14%. The 15.10.2028 maturity traded at a yield of 9.20%, while the 15.12.2028 maturity traded at 9.24%. Lastly, the 01.07.2029 maturity also changed hands at 9.87%.

At yesterday’s T-Bond auction, the CBSL adopted a cautious stance, accepting Rs. 43.2bn against the initial offer of Rs. 55.0bn. A sum of Rs. 18.2bn was raised from the 01.07.2030 maturity at a weighted average yield of 9.80%, while Rs. 25.0bn was accepted for the 01.07.2037 bond, in line with the offer, at a weighted average yield of 10.90%.

On the external front, the LKR depreciated against the USD, closing at Rs. 309.83/USD compared to Rs. 309.71/USD recorded the previous day. Overnight liquidity in the banking system expanded to Rs. 124.3bn from Rs. 118.6bn recorded previously.