Geopolitical tension nudges yields slightly higher

By First Capital Research

Heightened global political uncertainty has weighed on the secondary market, sparking bouts of selling amid moderate trading volumes. 

This pressure translated into a modest upward shift of the yield curve, with the 2028 maturities bearing a notable impact.

Consequently, 15.02.2028 traded at 8.80 percent while 15.03.2028 traded at 8.85 percent. 

Meanwhile, 01.05.2028 and 01.07.2028 were seen trading at 8.90 percent. Moving ahead on the yield curve, 15.09.2029 traded at 9.48 percent and 15.12.2029 traded at 9.50 percent. 

Finally, 15.12.2031 changed hands at 10.32 percent, while 15.09.2034 traded at 10.48 percent. 

In the forex market, the Sri Lankan rupee depreciated against the greenback, closing at Rs.299.4/US dollar, compared to the previously seen rate of Rs.299.0/US dollar. 

Meanwhile, overnight liquidity in the banking system contracted to Rs.131.9 billion, from Rs.187.5 billion in the previous session.