Mixed trading activity ahead of 1st Monetary Policy Decision of the year

By First Capital Research

The secondary market yield curve experienced mixed traded activity and moderate trading volumes ahead of the 1st Monetary Policy Decision of the year. 

The short end of the curve saw buying interest, whilst the long end of the yield curve witnessed selling pressure. 
Notable trades were recorded in the 2026, 2027, 2028, 2029, 2030, and 2031 maturities. 

Accordingly, 15.05.2026 and 01.08.26 traded in the range of 8.80% to 8.90% while 01.05.27 and 15.06.27 traded between 9.65% to 9.75%. At the belly end of the curve, 15.02.28 and 15.03.28 traded at the rates of 10.15% to 10.18%, respectively. Furthermore, 15.09.29 traded at 10.90% whilst 15.10.30 traded between 11.30% to 11.35%. 

Meanwhile, the 15.03.31 and 15.12.31 bonds traded between 11.31% to 11.42% and 01.07.32 traded at 11.50%. Additionally, short-term treasury bills exchanged at the rates of 8.05% to 8.15% and 1Yr T-Bill traded at 8.50%. 

On the external front, the LKR depreciated slightly against the USD, closing at Rs. 298.47/USD compared to Rs. 298.41/USD recorded the previous day. 

CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.92bn yesterday. Overnight liquidity in the banking system contracted to Rs. 158.86bn from Rs. 169.55bn recorded the previous day.