Bond market closes week positively

Money market liquidity stable Foreign holdings in rupee Treasuries continue to climb; record 3rd straight weekly increase Rupee depreciates to hit low of Rs. 304

- BY WEALTH TRUST SECURITIES

THE secondary Bond market opened the holiday-shortened week on a steady note, with overall activity remaining moderate amid a cautious investor tone.

Trading was largely confined to selected maturities, as most market participants adopted a wait-and-see approach following the long weekend. Yields held broadly steady across the curve, reflecting the absence of strong directional sentiment.

As the week progressed, the market continued to exhibit a subdued tone, with activity remaining relatively muted through midweek sessions. Limited trades on select maturities characterised market behaviour, as participants stayed largely on the sidelines and yields continued to consolidate.

Despite the quiet start, renewed buying interest emerged towards the later part of the week, driving a sharp increase in activity and transaction volumes. The focus shifted toward the short end of the yield curve, particularly the 2026-2029 maturities, which saw yields drop marginally amid strong demand.

Overall, the week's trading reflected a steady yet cautious market sentiment, with activity skewed toward shorter tenors and sentiment gradually improving toward the end of the week as investors began to reengage ahead of upcoming primary market events. The details of the upcoming Treasury Bill auction scheduled for this Wednesday were announced.