Measured optimism returns as buying resumes

By First Capital Research

Yesterday, market participants deviated from the mixed stance that prevailed earlier in the week and displayed a measured appetite for buying amid moderate trading volumes.

Consequently, on the short end of the curve, 15.09.2027 and 01.05.2027 traded between 8.40% to 8.62%. 

Moving ahead, 2028 maturities were seen changing hands within the 8.75% to 8.95% range. Finally, 15.06.2029, 15.09.2029 and 15.12.2029 were seen trading between 9.40% to 9.56%. 

The Central Bank of Sri Lanka yesterday conducted its weekly Treasury bill auction, successfully raising the full initial offer of Rs. 167.5bn. 

The average weighted yield on the 3-month T-Bill held steady at 7.55%, while yields on the 6-month and 12-month tenors edged down by 4 basis points, settling at 7.73% and 7.94%, respectively.

In the forex market, the LKR appreciated marginally against the greenback, closing at Rs. 299.5/USD, compared to the previously seen rate of 299.6/USD. 

Meanwhile, overnight liquidity in the banking system expanded to Rs. 163.1bn from Rs. 156.7bn in the previous session.