Market remains on sidelines awaiting further clarity

By First Capital Research

The secondary market commenced the week on a cautious note, with investors largely remaining on the sidelines, resulting in low trading activity and subdued volumes. 

Market participants adopted a wait-and-see approach ahead of this week’s T-bill and T-bond auctions, seeking greater clarity amid the prevailing external uncertainties.

Despite the muted market conditions, selective interest was observed across a few maturities. At the short end, 15.02.2028 traded at 11.75 percent, while the 15.06.2029 maturity changed hands at 12.05 percent. 

Further along the curve, the 01.08.2030 and 15.10.2030 bonds witnessed activity within the 12.12 percent to 12.30 percent range.

The PDMO announced a T-bond auction, scheduled to be held on May 11, 2026, at which a total of Rs.150.0 billion is expected to be raised across 2030, 2032 and 2037 maturities. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, standing at Rs.336.39/US dollar, compared to Rs.336.16/US dollar seen earlier. 

Liquidity in the banking system contracted to Rs.73.25 billion, from Rs.115.04 billion recorded previously.