*First Capital Research | Daily FI & UT Watch | 10 Feb 2025* *“Thin volumes emerge ahead of upcoming auction”* The secondary market yield curve commenced the week with limited activity and thin trading volumes. The CBSL announced the issuance of LKR 67.5Bn in treasury bonds in an auction scheduled to be held on 13th Feb-25, where LKR 37.5Bn is to be raised for the 01.09.28 maturity, and LKR 30.0Bn is to be raised for the 15.10.30 maturity. Amongst the traded maturities, notable trades were amongst the 2028, 2030, and 2032 maturities. On the belly end of the curve, 15.02.28, and 15.03.28 traded at a rate of 10.15%, while 01.07.28 traded at a rate of 10.38%, and 15.10.28 traded at a rate of 10.40%. Similarly, the 15.05.30 maturity traded at a rate of 11.09%, and 01.07.32 traded at a rate of 11.48%. On the external front, the LKR appreciated against the USD closing at LKR 297.7/USD compared to LKR 298.5/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 expanded to LKR 153.52Bn from LKR 144.29Bn recorded the previous day. *-First Capital Research-*