Following the T.-Bond auction on 29 January the yield curve experienced a slight downward shift during the day while overall market saw moderate volumes. On 30 January the Treasury Bill auction 6M maturity saw its yield decreasing by 1bps while the yield of 1-yr Bill remained unchanged at 8.90%. Overall yield curve remained almost unchanged amidst market participants remaining on the sideline.
Liquidity & CBSL Holdings
Market liquidity had a high volatile trend during the week with CBSL Holdings having a sharp drop on 23 January and this downward trend continued however on 30 January a sharp spike was witnessed, the highest volatility recorded on 22 January amounting to 13.1Bn.
Amidst renewed foreign buying interest, foreign holding increased by LKR 1.77Bn to record at LKR 328.1Bn. With the overall Government Securities increased with foreign buying interest the overall foreign holding percentage improved to 6.7%.
Maturities for next Week
The Government Securities market has Treasury Bill maturity amounting to LKR 22.02Bn which needs to be settled on 9 February 2018.
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