Mid-curve sees a rise in buying activity

By First Capital Research

The secondary market yield curve saw heightened trading activity amid the high trading volumes, with buying interest emerging in the mid-tenure segment of the yield curve.

Amongst the traded maturities, the 01.05.2027 maturity traded at 9.05 percent whilst 15.03.2028 traded within a range of 9.10 percent and 9.15 percent. Meanwhile, the 01.05.2028 and 01.07.2028 maturities traded between 9.20 percent and 9.28 percent. In addition, the 15.10.2028 and 15.12.2028 maturities were traded in the range of 9.25 percent to 9.35 percent. 

Further along the curve, the 15.06.2029 maturity traded at 9.65 percent, while the 15.09.2029, 15.10.2029, 15.12.2029 and 01.03.2030 maturities traded within the range of 9.70 percent to 9.75 percent. Moreover, the 15.03.2031 and 01.10.2032 maturities traded at yields of 10.15 percent and 10.55 percent, respectively. 

Further along the curve, the 01.06.2033 maturity traded in the range of 10.50 percent to 10.55 percent, while the 15.06.2035 maturity traded between 11.17 percent and 11.25 percent.

On the external front, the Sri Lankan rupee remained broadly stable against the US dollar, closing at Rs.309.1/US dollar, compared to Rs.309.0/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.182.72 billion, from Rs.151.97 billion recorded previously.