Market opens November on a bearish footing

By First Capital Research

As trading opened for the new month, the secondary market appears to have shrugged off the lethargy that was evident across most of October. 

Investors seem to have embraced a buying stance, in turn pushing the yield curve down by approximately 5-10bps across the board. Trading volumes appeared moderate amid noteworthy activity that was visible across the curve. 

In terms of the 2028 maturities that were traded, 15.03.2028 traded at 9.05 percent while 01.05.2028, 01.07.2028, 15.09.2028 and 15.10.2028 traded between 9.10 percent and 9.15 percent. The 2029 maturities also attracted noteworthy activity as 15.06.2029, 15.09.2029 and 15.10.2029 were seen trading between 9.50 percent and 9.55 percent. Moving ahead, the 15.03.2031 maturity was seen changing hands at 10.00 percent while 01.06.2033 and 01.11.2033 traded at a rate of 10.60 percent. Finally, at the long end of the curve, 01.07.2037 maturity was seen changing hands at 10.80 percent. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.304.49/US dollar, compared to Rs.304.42/US dollar seen previously. Overnight liquidity in the banking system contracted to Rs.105.2 billion, from Rs.155.1 billion recorded on the previous day.