Mixed sentiment persists as yields decline across board

The secondary market recorded strong activity and elevated trading volumes, with yields easing across the curve. 

Buying interest emerged in the early hours of trading, while slight selling interest was observed in the latter half of the session. Investor interest was concentrated in the belly and long end of the yield curve, where the majority of trading activity was observed. Participation from primary dealers and banks remained active throughout the session. Among the maturities traded, the 15.02.2028 maturity traded at 10.60 percent. In the 2029 segment, the 15.09.2029, 15.10.2029 and 15.12.2029 maturities traded between the rates of 10.95 percent to 10.85 percent. 

Meanwhile, the 01.03.2030, 15.05.2030 and 01.08.2030 maturities traded between the rates of 11.20 percent to 10.95 percent, while the 15.03.2031 maturity traded at 11.30 percent. 

Further along the curve, the 15.12.2032 maturity changed hands between the rates of 11.55 percent to 11.45 percent. Within the 2033 segment, the 15.01.2033 and 01.11.2033 maturities traded between the rates of 11.65 percent to 11.50 percent. 

In the long end, the 15.06.2034 maturity traded between the rates of 11.73 percent to 11.60 percent, whilst the 15.03.2035 maturity changed hands between the rates of 11.82 percent to 11.73 percent.

Popular maturities traded during the day:

On the external front, the Sri Lankan rupee depreciated against the US dollar, standing at Rs.334.28/US dollar, compared to Rs.333.98/US dollar seen earlier. 

The liquidity in the banking system remained broadly unchanged at Rs.31.25 billion, from Rs.31.20 billion recorded previously.