Market tone mixed as investors stay cautious

By First Capital Research

Rebounding from the previous day’s subdued tone, the secondary market saw mixed trading activity with moderate volumes. 

Despite this, the yield curve remained largely stable, indicating continued investor caution.

Amongst the traded maturities, the short end of the yield curve saw, the 01.05.2027 maturity traded at 8.40%, while the 15.02.2028 and 01.05.2028 bonds changed hands between 8.71% and 8.77%. Further along the curve, the 15.10.2028 traded at a rate of 8.85% and 15.06.2029 traded within the range of 9.30% to 9.31%. The 15.05.2030 and 15.03.2031 maturities were quoted at the rates of 9.47% and 9.85%, respectively. Furthermore, the 01.11.2033 bond was seen trading between 10.64% and 10.65%.

In the forex market, the LKR depreciated against the greenback, closing at LKR 301.0/USD, compared to the previously seen rate of LKR 300.9/USD. Meanwhile, overnight liquidity in the banking system contracted to LKR 88.33Bn from the previously seen level of LKR 118.16Bn.