Mixed sentiment emerges post auction

By First Capital Research
The secondary market yield curve witnessed a day of mixed sentiment amidst the presence of both buying and selling activity. 
The market saw moderate volumes following the Thursday’s T-bond auction where a total of Rs.79.3 billion was accepted. Amongst the traded maturities, notable trades were on the 2026, 2028, 2030 and 2031 maturities. On the short end of the curve, 01.06.26, 01.08.26, 15.12.26 were seen trading between rates of 9.15 percent - 9.45 percent. On the belly end of the curve, 01.05.28, 01.07.28, 01.09.28 and 15.10.28 traded between rates of 10.25 percent - 10.43 percent. The long end of the curve, 15.10.30 and 15.03.31 traded between rates of 11.29 percent - 11.25 percent and 11.36 percent, respectively.  
Meanwhile, on the external front, the Sri Lankan rupee appreciated against the US dollar closing at Rs.295.59/US dollar compared to Rs.296.09/US dollar recorded the previous day. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,515.62 billion yesterday. Overnight liquidity in the banking system contracted to Rs.130.26 billion from Rs.142.11 billion recorded the previous day.