Moderate trading activity keeps yield curve steady

By First Capital Research

The secondary market exhibited mixed sentiment yesterday, characterized by moderate trading activity, which contributed to the overall yield curve remaining unchanged.

Trades executed during the day include the 15.03.2028 maturity, which traded within a narrow yield range of 9.14% to 9.15%. 

In the 2029 segment, the 15.10.2029 and 15.12.2029 maturities traded within a range of 9.68% to 9.75%.

The 01.07.2030 bond changed hands at a yield of 9.78%, while the 15.03.2031 issue traded in a wider band of 10.03% to 10.10%. 

Further along the curve, the 15.12.2032 maturity saw trades at a yield of 10.50%.

On the external front, the LKR depreciated against the USD, closing at Rs. 302.62/USD vs. Rs. 302.49/USD seen previously. Overnight liquidity in the banking system contracted to Rs. 156.8bn from Rs. 174.3bn recorded the previous day.