Secondary Bond market yields drop ahead of back-to-back auctions

THE secondary Bond market yesterday saw activity and transaction volumes increase marking a shift in tone following a spell of defensive trading following Cyclone Ditwah seen in recent sessions.

- BY WEALTH TRUST SECURITIES

Renewed demand was observed at the higher yield levels sparking a robust recovery and downward retracement.Yields were pushed lower on the back of strong buying interest amidst the backdrop of news of additional external financing linked to ongoing and future potential IMF engagement. This included the request for $ 200 million through the IMF's Rapid Financing Instrument and a new review in January 2026. These developments boosted confidence around near-term funding capacity and policy supervision, fiscal discipline and external credibility.

The enthusiasm was also supported by market expectations of further US Monetary Policy easing, with the CME Fedwatch tool showing an 89.4% probability of an additional 25 basis point rate cut at the FOMC's December meeting with the decision due imminently, which could spur further foreign investment in Rupee Treasuries.

In terms of the secondary Bond market trade summary, 15.02.28 and 01.05.28 maturities were seen trading at the rates of 9.20% and 9.25% respectively. The 15.06.29 maturity saw its yield drop down the range of 9.52%-9.50%.