Geopolitical unease keeps selling sentiment alive

By First Capital Research

The market opened with a continuation of the selling sentiment that has persisted since the turmoil sparked by the ongoing geopolitical tensions. 

Against this backdrop, yesterday also witnessed selling activity, as investors chose to engage in profit-taking amid the prevailing uncertainty.

Consequently, at the short end of the curve, 2028 maturities traded between 9.00 percent to 9.20 percent. The 2029 maturities were seen changing hands within the 9.60 percent to 9.80 range. Moving ahead on the yield curve, 15.09.2034 was observed trading at 10.68 percent. 

In the forex market, the Sri Lankan rupee appreciated marginally against the greenback, closing at Rs.300.4/US dollar, compared to the previously seen rate of Rs.300.7/US dollar. Meanwhile, overnight liquidity in the banking system expanded to Rs.103.0 billion, from the previously seen low of Rs.89.15 billion.