Mixed activity emerges ahead of monetary policy review

By First Capital Research

As the week began, the secondary market experienced mixed interest. 

Market activity and transaction volumes remained at moderate levels, with mixed activity observed, particularly on the tenures for the 2028 maturities. However, buying interest emerged at the short end of the curve, supported by elevated overnight market liquidity compared to the previous weekend, closing at Rs.184.1 billion. Accordingly, at the short end of the curve, the 01.05.27 and 15.09.27 maturities traded within the range of 9.28 percent to 9.03 percent. The 2028 maturities, namely 01.05.2028, 01.07.2028, 01.09.2028 and 15.10.2028, traded within the range of 9.86 percent to 9.65 percent. Further along the belly end of the curve, the 15.09.2029, 15.12.2029 and 15.05.2030 bonds were traded at rates ranging from 10.16 percent to 10.00 percent, while the 01.10.2032 maturity traded at 10.50 percent. 

Furthermore, pivoting from the declining trend of the AWPR, the week ended March 21, 2025 saw the AWPR close at 8.44 percent, up by 7bps compared to the previous week. Additionally, the Sri Lankan rupee remained broadly stable at Rs.296.56/US dollar, compared to Rs.296.60/US dollar recorded on the previous day.