Bond yields climb up, as panic selling grips secondary market

By First Capital Research

The secondary market witnessed panic selling prompted by the escalating tensions in the Middle East. 

The trading volumes were moderate, while the yield curve eased edged up by c.15-25 bps across all bond maturities. 

Over the short-term, the 15.02.2028 maturity traded in the range of 9.60 percent-9.70 percent. 

Progressing ahead, 15.09.2029, 15.10.2029 and 15.12.2029 traded between 9.85 percent-10.10 percent. 

While the 01.03.2030 bond changed hands within 10.05 percent-10.10 percent, the 15.05.2030 maturity was dealt at 10.18 percent. 

Moreover, 15.03.2031 was traded between 10.15 percent-10.25 percent and 01.06.2033 was seen trading at 11.05 percent. 

Finally, 15.09.2034 changed hands in a narrow range of 11.20 percent-11.23 percent. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.311.7/US dollar, compared to Rs.311.4/US dollar recorded previously. 

Liquidity in the banking system contracted to Rs.308.3 billion, from Rs.323.0 billion recorded previously.