Buying stance holds firm, yields dip across board

By First Capital Research

The secondary market sustained the buying sentiment that emerged earlier this week, pushing the yields lower across the curve and signalling a broad softening in rates. 

Despite the continued investor interest, the trading volumes remained steady at moderate levels.

Among the traded maturities, 15.02.2028 and 15.03.2028 traded at 9.60 percent while 01.07.2028, 15.10.2028 and 15.12.2028 traded at 9.70 percent, 9.75 percent and 9.78 percent, respectively. 

Moving ahead on the yield curve, 15.06.2029 traded at 10.06 percent while 15.09.2029 and 15.12.2029 both traded at 10.10 percent. In terms of the 2030 maturities, 15.05.2030 and 15.10.2030 traded at 10.20 percent and 10.25 percent respectively. 

Moreover, the 15.03.2031 maturity changed hands at 10.60 percent while the 01.11.2033 maturity traded at a rate of 10.90 percent. Finally, at the long end of the curve, the 15.03.2035 maturity traded at 11.00 percent. 

In the forex market, the Sri Lankan rupee continued to appreciate against the greenback, closing at Rs.298.5/US dollar, compared to the previous day’s rate of Rs.298.7/US dollar. Meanwhile, overnight liquidity in the banking system expanded to Rs.157.9 billion, from Rs.123.8 billion in the previous session.