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Weekly Govt Securities: Benchmark 1-year T-bill records 1-month high

Weekly Yield Movement & Volume

During the week, the secondary market yield curve remained broadly unchanged, while the overall market witnessed limited activities amidst thin volumes. At the weekly Treasury Bill auction, the benchmark one-year was accepted at a weighted average of 8.45 per cent, up by 22bps, recording a one-month high. The three-month bill was accepted at a weighted average of 7.51 per cent, up by 6bps, while the six-month was accepted at a weighted average of 7.97 per cent, up by 32bps, recording a 4½-month high.

Meanwhile in the forex market, the rupee depreciated to close the week at Rs 181.17, from Rs 181.14 at the beginning of the week.


Liquidity and CBSL Holdings

Volatility in liquidity was witnessed, although it remained positive during the week. The highest excess liquidity for the week was recorded on 17 December, amounting to Rs 27.75 billion, although it witnessed a slight decline towards the end of the week to
Rs 27.04 billion. Meanwhile, CBSL Holdings slightly increased to close at Rs 78.5 billion.


Foeign Interest

Foreign Holdings in Government Securities decreased by Rs 82.8 billion to record at Rs 108.4 billion, while the foreign holding percentage also declined to 2.0 per cent.


Maturities for next week

The Government Security market has to settle a Treasury Bill maturity amounting to Rs 12.8 billion during the week ending 27 December 2019.
Daily Summary

Friday (13.11.19): The secondary market yield curve remained unchanged, while the overall market witnessed limited activity amidst low volumes, as market participants remained on the sidelines during the short week.
Monday (16.12.19): Commencing the week, the secondary market was at a complete standstill.

Tuesday (17.12.19): The secondary market yield curve remained broadly unchanged, while the overall market witnessed limited activities with low volumes. During the day, mid-tenor [15.09.24] was seen trading at 9.85-9.88 per cent levels. However, overall market remained at a standstill mode as most market participants stayed on sidelines. Meanwhile, CBSL announced an issue of Rs 25.0 billion worth of Treasury Bills at the bill auction to be held on 18 Wednesday.

Wednesday (18.12.19): The secondary market yield curve remained broadly unchanged, while the overall market witnessed limited activities amidst thin volumes. At the primary bill auction, the three-month bill was accepted at a weighted average of 7.51 per cent, up by 6bps, while the six-month was accepted at a weighted average of 7.97 per cent, up by 32bps, recording a 4½-month high. The benchmark one-year was accepted at a weighted average of 8.45 per cent, up by 22bps and recorded a one-month high, while post-auction, selling interest was seen on mid tenor [15.09.24] at 9.95 per cent.