Mid-to-long tenures command sustained interest

By First Capital Research

Yesterday marked persistence in buying interest, particularly for mid-to-long tenure maturities. This in turn prompted a modest downward adjustment in the yield curve.

In terms of 2028 maturities, 15.02.2028 and 15.03.2028 traded within the narrow range of 8.95% to 8.98% while 01.05.2028, 01.07.2028, 15.10.2028 and 15.12.2028 traded higher between 9.00% to 9.12%. 

Moving ahead, 15.06.2029 also changed hands within the narrow range of 9.42% to 9.45% while 15.10.2029 was seen trading at 9.50%. Further ahead on the yield curve, 01.03.2030 traded between 9.60% to 9.65% while 01.07.2030 was seen trading at 9.65%. 

Similar to Monday, mid tenures showed noteworthy activity with 15.03.2031 trading between 9.80%-9.85%, 01.10.2032 trading between 10.15%-10.17% while 15.01.2033 and 01.06.2033 traded at 10.40% and 10.50% respectively. 

Finally, 15.06.2034 traded at 10.65%andat the long end of the curve, 15.06.2035 changed hands between 10.72% to 10.76% while 01.07.2037 traded at 10.95%.

On the external front, the LKR depreciated against the USD, closing at Rs. 309.45/USD compared to Rs. 309.38/USD recorded the previous day. Overnight liquidity in the banking system expanded yet again to Rs. 282.22bn from Rs. 278.20bn recorded previously.