Activity remains limited, yield curve stays put

By First Capital Research

The secondary market yesterday withstood yet another day of measured caution amid limited investor activity, which in turn prompted the yield curve to remain largely static. 

At the short end of the curve, 15.02.2028, 01.05.2028 and 15.10.2028 traded at 8.75%, 8.80% and 8.90% respectively. Moving ahead, 15.09.2029 and 15.12.2029 trade between 9.40% to 9.43% while 15.05.2030 was seen changing hands at 9.50%. 

Additionally, 15.03.2031 traded at 9.88% while 15.12.2032 traded between the narrow range of 10.25% to 10.26%. Some activity was also visible at the belly end of the curve with 01.06.2033 trading between 10.60% to 10.61% and 15.09.2034 changing hands at 10.75%. 

In the forex market, the LKR depreciated against the greenback, closing at Rs. 301.19/USD, compared to the previously seen rate of Rs. 301.15/USD. Meanwhile, overnight liquidity in the banking system contracted to Rs. 116.0bn from the previously seen level of Rs. 135.9bn.