Mild selling surfaces amid prevailing uncertainty

By First Capital Research

The secondary market remained largely subdued yesterday, reflecting the persistent cloud of geopolitical uncertainty. Still, amid the low volumes and restrained activity, a hint of selling managed to break through the stillness.

On the short end of the curve, 15.06.2029, 15.09.2029 and 15.12.2029 traded between 9.50% to 9.65%. Moving ahead on the yield curve, 15.12.2032 was seen changing hands at 10.40%. Finally, 15.09.2034 and 15.03.2035 were seen trading within the 10.55% to 10.60% range. 

In the forex market, the LKR appreciated marginally against the greenback, closing at Rs. 300.7/USD, compared to the previously seen rate of 300.8/USD. 

Meanwhile, overnight liquidity in the banking system expanded to Rs. 115.1bn from Rs. 101.1bn in the previous session. Moreover, according to the latest data published by CBSL, credit to the private sector for Apr-25 stood at Rs. 8,501.6bn denoting a 15.2% YoY expansion.