*First Capital Research | Daily FI & UT Watch | 07 Feb 2025* *“Market closes the week with mixed activity and moderate volumes”* The secondary market yield curve witnessed a day of moderate volumes and mixed activity. The CBSL announced the issuance of LKR 157.5Bn in T-Bills in an auction scheduled to be held on 11th Feb-25, where LKR 27.5Bn is to be raised for the 91-day bill, LKR 55.0Bn is to be raised for the 182-day bill, and LKR 75.0Bn is to be raised for the 364-day bill. Amongst the traded maturities, notable trades were amongst the 2026, 2028, and 2030 maturities. On the short end of the curve, 01.08.26 was seen trading at a rate of 8.80%. On the belly end of the curve, 01.05.28 traded between rates of 10.29% - 10.26%, while the 15.10.28, and 15.12.28 maturities traded between rates of 10.48% - 10.39%. The 15.10.30 maturity traded between 11.29% - 11.26%. Additionally, the 6M bill was seen trading at a rate of 8.00%. On the external front, the LKR appreciated against the USD closing at LKR 298.5/USD compared to LKR 298.9/USD recorded the previous day. CBSL holdings of government securities remained unchanged, closing at LKR 2,511.92Bn today. Overnight liquidity in the banking system contracted to LKR 144.29Bn from LKR 159.89Bn recorded the previous day. *-First Capital Research-*