Muted moves mark a mellow market

By First Capital Research

Market participants carried forward the ambivalent tone from the previous session, resulting in a largely static yield curve. However, overall activity levels were rather dormant, leading to muted volumes. 

On the short end of the curve, 15.02.2028, 01.07.2028 and 15.10.2028 traded between 8.75 percent to 8.90 percent. Moving ahead on the yield curve, 15.12.2029 traded within the 9.54 percent to 9.50 percent range. Finally, the 15.05.2030 maturity was seen trading at 9.55 percent. 

In the forex market, the Sri Lankan rupee appreciated against the greenback, closing at Rs.299.3/US dollar, compared to the previously seen rate of Rs.299.4/US dollar. Meanwhile, overnight liquidity in the banking system contracted to Rs.173.7 billion from Rs.197.4 billion in the previous session.