Moderate trading and steady buying in the secondary market

By First Capital Research

The secondary market yield curve experienced moderate trading volumes and activity, supported by continued buying interest yesterday.

In the short end, the 15.02.2028 and 01.07.2028 maturities traded at yields of 9.00% and 9.10%, respectively. The 2029 segment was relatively active as well, with the 15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 bonds changing hands within a yield range of 9.48%-9.55%. 

In the 2030 maturities, the 15.05.2030 and 01.07.2030 bonds traded between 9.66% and 9.72%. Meanwhile, the longer-dated 01.11.2033 bond recorded trades between 10.55%and 10.58%.

On the external front, the LKR depreciated against the USD, closing at Rs. 304.6/USD compared to Rs. 304.5/USD seen previously. Overnight liquidity in the banking system contracted to Rs. 125.9bn from Rs. 133.2bn recorded on the previous day.