Lack of market activity results in stable yield curve

By First Capital Research

The secondary market opened the week with limited trading activity, leading to a largely static yield curve.

Among the few notable trades, the 01.05.2027 maturity traded at 8.35%, while the 15.03.2028 maturity traded at 8.76%. Similarly, the 01.05.2028 exchanged hands at the rate of 8.88%. Despite these transactions, the overall market environment remained quiet, preventing any significant movement or adjustment in the yield curve.

In the forex market, the LKR appreciated marginally against the greenback, closing at LKR 300.70/USD, compared to the previously seen rate of 300.71/USD. Meanwhile, overnight liquidity in the banking system expanded to LKR 114.2Bn from the previously seen level of LKR 109.7Bn.