Buying interest persists despite signs of mixed sentiment

By First Capital Research

The buying sentiment that prevailed over the last few days continued to persist amid some mixed sentiment that was particularly evident for 2028 and 2029 maturities. However, market participants continued to demonstrate buying interest for 2030, 2031 and 2032 maturities. 

At the mid end of the secondary market’s yield curve, the 15.02.2028 and 15.03.2028 traded within the range of 9.65% - 9.72%. 

Meanwhile, 01.05.2028, 01.07.2028, 15.10.2028 and 15.12.2028 traded at a marginally higher range of 9.75% - 9.90%. Moving ahead of the yield curve, the 15.09.2029 and 15.12.2029 maturities traded at 10.03% - 10.15% while 15.05.2030 and 15.10.2030 maturities traded within the range of 10.25% - 10.16%. 

Moreover, the 15.03.2030 maturity traded at 10.65% - 10.50%. Finally, the 01.07.2032, 01.10.2032 and 15.12.2032 maturities traded between 10.90% to 10.65% while the 01.06.2033 maturity traded at 11.00%. 

On the external front, the LKR depreciated against the USD, closing at Rs. 296.2/USD in comparison to Rs. 296.0/USD registered on the previous day. 

CBSL holdings of government securities remained stagnant at Rs. 2,511.9bn. Overnight liquidity of the Banking system expanded to Rs. 178.9bn from Rs. 172.1bn recorded on Wednesday.