Market buzz picks up pre-bond auction; investor sentiment becomes mixed

By First Capital Research 

Ahead of today’s T-Bond auction, the secondary market displayed mixed sentiment yesterday, shifting away from the buying trend observed over the past couple of sessions. 

The yield curve remained broadly unchanged, with moderate trading activity and healthy volumes observed across various maturities.

Accordingly, amongst the traded maturities at the short end, the 01.05.2027 maturity traded at the rates of 9.08% to 9.10%, while the 15.02.2028, 15.03.2028 and 01.05.2028 maturities traded at the rates of 9.80% to 9.75%,whilst15.10.2028 and 15.12.2028 traded between the rates of 9.97% to 9.86%. 

Meanwhile, towards the belly end of the curve, 15.06.2029, 15.09.2029 and 15.12.2029 maturities changed hands between 10.35% to 10.18%. Additionally, 15.03.2035 maturity traded at the rates of 11.10%% to 11.05%.

In the forex market, the LKR appreciated slightly against the greenback, closing at Rs. 299.49/USD, compared to the previous day’s rate of 299.50/USD. Meanwhile, overnight liquidity in the banking system contracted to Rs. 163.4bn from Rs. 163.5bn in the previous session.