Market mood shifts, profit taking kicks in

By First Capital Research

As the week came to a close, the secondary market witnessed a reversal of the buying trend that was evident earlier in the week. 

The buying stance was replaced by profit taking, which in turn pushed the yield curve higher across the board. Additionally, volumes in the secondary market were quite moderate yesterday. 

On the short end of the yield curve, 15.01.2028, 15.02.2028, 01.05.2028 and 01.07.2028 traded between 8.60 percent to 8.90 percent. In terms of the 2029 maturities, 15.06.2029, 15.09.2029 and 15.12.2029 were seen trading within the 9.35 percent to 9.60 percent range. 

Moving ahead on the yield curve, the 15.05.2030 maturity traded at 9.60 percent. Finally, 15.12.2032 changed hands at 10.10 percent while 15.09.2034 traded at 10.40 percent. 

In the forex market, the Sri Lankan rupee appreciated against the greenback, closing at Rs.299.4/US dollar, compared to the previously seen rate of Rs.299.7/US dollar. Meanwhile, overnight liquidity in the banking system contracted marginally to Rs.203.8 billion, from Rs.207.9 billion in the previous session.