Foreign buying extends the buying stance for 3rd consecutive session

By First Capital Research 

Market participants in the secondary market continued their buying momentum for the third consecutive day, driven by strong foreign buying interest. 

This resulted in high trading volumes and increased activity in the secondary market trades. Accordingly, the yield curve witnessed a decline from short to belly end of the curve. 

Amongst the traded maturities, in the short end 01.05.27 maturity traded at 9.22% whilst 15.09.27 and 15.10.27 bonds traded at the range of 9.41% to 9.47%. Meanwhile, both 15.02.28 and 15.03.28 maturities traded at 10.00%. Additionally, 15.09.28, 15.10.28 and 15.12.28 bonds traded at the range of 10.30% to 10.35%, whilst 15.09.29 traded at 10.75%. 15.10.30 maturity traded between 11.12% to 11.16%. 

On the external front, the LKR depreciated against the USD, closing at LKR 296.63/USD compared to Rs. 295.89/USD recorded the previous day. 

CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.92bn yesterday. Overnight liquidity in the banking system contracted to Rs. 153.2bn from Rs. 164.8bn recorded the previous day.