Secondary Bond market yields close higher

THE Secondary Bond market last week saw overall activity and transaction volumes at subdued levels. Sparse trades were observed on thin volumes focused on selected maturities. During the early part of the week, yields were seen holding broadly steady as the market consolidated. Market participants initially gravitated towards the sidelines, adopting a wait and see approach amid the absence of strong directional cues. However, at the tail-end of the week selling pressure kicked in and yields started to move up, following the period of stagnation.

- By WEALTH TRUST SECURITIES

This upward movement was accompanied by a slight pickup in volumes and activity. As a result, Secondary Bond market two-way quotes closed higher week-on-week. The yield curve was observed shifting upwards particularly more pronounced along the belly-end.

Nevertheless, foreign holdings in Rupee Treasuries recorded a net inflow of Rs. 2.10 billion — equivalent to a 2.00% week-on-week increase — during the week ending 28 August, following two consecutive weeks of outflows. This lifted the overall holding to Rs. 108.67 billion, with the fresh inflow more than offsetting the cumulative outflow of Rs. 1.63 billion seen over the prior two weeks. Notably, this marks the highest level of foreign holdings since early February 2024.