Moderate volumes witnessed as investors adopt wait-and-see stance

By First Capital Research 

The secondary market yield curve witnessed a day of moderate volumes and limited activity as investors adopted a wait-and-see approach following the year’s first bond auction held on 9th Jan-25, where the CBSL accepted a total of Rs. 179.3bn in bonds. 

Amongst the traded maturities, notable trades were on the mid end of the curve, primarily amongst the 2028, 2029, 2030, and 2031 maturities. On the belly end of the curve, 15.02.28, 15.03.28, 01.05.28, 01.07.28, and 15.10.28 traded at rates of 10.15%, 10.18%, 10.28%, 10.35%, and 10.40%, respectively. 

The 15.09.29 maturity was seen trading at rate of 10.80%. Similarly, 15.10.30, traded at a rate of 11.28%, while 15.03.31, 15.05.31, 01.12.31 traded at a rate of 11.37%. 

Meanwhile, on the external front the LKR depreciated against the USD closing at Rs. 295.2/USD compared to Rs. 294.6/USD recorded the previous day. 

CBSL holdings of government securities remained unchanged, closing at Rs. 2,511.92 bn yesterday. Overnight liquidity in the banking system expanded to Rs. 131.47bn from Rs. 79.61bn recorded the previous day.