Lacklustre trading keeps yields steady across curve

By First Capital Research

The secondary market commenced the week on a subdued note, reflecting limited investor activity and low trading volumes. 

This lack of momentum contributed to a broadly unchanged yield curve, signalling a cautious investor sentiment. At the shorter end of the yield curve, the 01.05.2027 maturity saw trades executed at 8.35 percent, while the 15.09.2027 maturity was quoted at 8.50 percent. Moving further along the curve, the 15.09.2029 maturity was seen trading at 9.37 percent. In the forex market, the LKR depreciated slightly against the greenback, closing at LKR 300.81/USD, compared to the previously seen rate of LKR 300.77/USD. Meanwhile, overnight liquidity in the banking system expanded to LKR 110.7Bn from the previously seen level of LKR 88.5Bn.