Buying momentum continues bringing down belly-end yields

By First Capital Research

The secondary market continued to witness buying momentum for the third consecutive day, bringing down yields across mid and longer tenures. 

Activity also stepped up compared to the previous week, following the part acceptance of the treasury bill auctions during the previous two weeks. 

Meanwhile, moderate volumes continued to be observed on the market with activity centred largely on the mid and belly end of the curve. With that, trades took place on the 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028 and 15.102.028 maturities between 9.95 percent-10.10 percent whilst the 15.09.2029 and 15.12.2029 maturities traded at 10.40 percent and 10.50 percent, respectively. 

Meanwhile, after bottoming out at Rs.56.9 billion on April 16, 2025, overnight liquidity has steadily improved, reaching Rs.120.8 billion as of April 25, 2025. In the forex market, the Sri Lankan rupee appears to have marginally weakened against the greenback, closing at Rs.300.1/US dollar, compared to the previous day’s rate of Rs.299.8/US dollar.