Market concludes week with selling interest

By First Capital Research

The secondary market yield curve concluded the week with activity visible on the short to mid tenures.

Selling interest emerged following the conclusion of Thursday’s bond auction where the Central Bank fully accepted Rs.27.5 billion in T-bonds. Notable trades were amongst the 2027, 2028, 2029 and 2030 maturities. 

On the short end of the curve, 01.05.27 and 15.09.27 traded at 9.25 percent and 9.50 percent, respectively. On the belly end of the curve, 15.02.28 and 15.03.28 traded at a rate of 10.05 percent, while 01.05.28, 15.10.28 traded at rates of 10.12 percent and 10.35 percent - 10.38 percent, respectively. 

Similarly, 15.09.29 traded at 10.75 percent. The 15.05.30 and 15.10.30 maturities traded at 10.98 percent and 11.10 percent, respectively. 

On the external front, the Sri Lankan rupee strengthened appreciating against the US dollar, closing at Rs.295.5/US dollar compared to Rs.295.7/US dollar recorded the previous day. Similarly, the Sri Lankan rupee also appreciated against other major currencies such as the GBP, EUR, JPY, CNY and AUD. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system expanded to Rs.172.7 billion, from Rs.171.6 billion recorded the previous day.