Middle East tensions prompt selling stance in secondary market

By First Capital Research

Influenced by heightened Middle East tensions, investors in the secondary market adopted a selling stance. 

The yield curve inched up at the belly end, with overall market activity remaining subdued and generating moderate volumes.

Trades were minimal with 01.05.2028 and 01.07.2028 traded at the rates of 8.75 percent to 8.80 percent whilst 15.07.2029, 15.09.2029 and 15.12.2029 traded between the rates of 9.45 percent to 9.55 percent. Moving ahead of the yield curve, 15.12.2032 traded at the rate of 10.30 percent whilst 15.09.2034 changed hands at the rate of 10.48 percent. 

In the forex market, the Sri Lankan rupee depreciated marginally against the greenback, closing at Rs.299.02/US dollar, compared to the previously seen rate of Rs.298.98/US dollar. Meanwhile, overnight liquidity in the banking system expanded to Rs.187.5 billion, from Rs.178.6 billion in the previous session.