Middle East ceasefire triggers heavy buying

By First Capital Research

Secondary market participants responded positively to the Middle East ceasefire, leading to strong buying interest across the yield curve. Additionally, market activity and trading volumes remained elevated.

Consequently, at the short end of the curve, 2028 maturities namely, 15.03.2028, 01.05.2028 and 15.12.2028 traded between 8.90% to 9.10%. 

The 2029 maturities, particularly 15.06.2029, 15.09.2029, and 15.12.2029, were actively traded within the range of 9.50% to 9.65%. Moving ahead on the yield curve, 15.12.2032 was observed trading at the range of 10.47% to 10.40%. 

In the forex market, the LKR depreciated marginally against the greenback, closing at Rs. 301.1/USD, compared to the previously seen rate of 300.4/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 110.7bn from the previously seen low of Rs. 103.0bn.