Focused interest persists; yields stay anchored

By First Capital Research 

Yesterday’s market tone was marked by selective buying interest, including pockets of foreign participation. 2029 maturities garnered noteworthy investor interest while 2028 maturities also drew consistent interest.

Overall market volumes were moderate, reflecting a cautious yet constructive tone amid selective positioning.

Amongst the 2028 maturities that were traded on 15.03.2028, 01.07.2028 and 15.12.2028 traded between 8.70% to 8.83%. In terms of 2029 maturities, 15.06.2029, 15.09.2029, 15.10.2029 and 15.12.2029 were seen changing hands between 9.30% to 9.40%. Moving ahead on the yield curve 15.12.2032 traded at a rate of 10.35%. 

In the forex market, the LKR appreciated against the greenback, closing at Rs. 299.99/USD, compared to the previously seen rate of 300.02/USD. 

Meanwhile, overnight liquidity in the banking system contracted to Rs. 91.1bn from the previously seen level of Rs. 99.4bn.