Market hits snooze, yields barely blink

By First Capital Research

The secondary market endured yet another session of limited activity and thin trading volumes, leaving the yield curve effectively unchanged.

On the short end of the curve, 15.02.2028, 01.05,2028 and 01.07.2028 traded at 8.70 percent, 8.75 percent and 8.81 percent, respectively. 

Moving ahead on the yield curve, 15.09.2029 traded at 9.45 percent while 15.12.2029 traded at 9.50 percent. Finally, the 15.03.2031 maturity was seen changing hands at 9.95 percent. 

The Central Bank announced the issuance of Rs.111.0 billion worth T-bonds through an auction scheduled for June 12, 2025. Consequently, Rs.41.0 billion is set to be raised through a 2029 maturity, which bears a coupon rate of 10.35 percent. The remaining Rs.70.0 billion is to be raised via a 2032 maturing, bearing a coupon of 11.50 percent. 

In the forex market, the Sri Lankan appreciated against the greenback, closing at Rs.299.1/US dollar, compared to the previously seen rate of Rs.299.3/US dollar. Meanwhile, overnight liquidity in the banking system expanded to Rs.182.7 billion, from Rs.173.7 billion in the previous session.