Secondary market activity remains subdued despite post-auction buying interest

By First Capital Research

Following the treasury bond auction held yesterday, the secondary market witnessed a revival in buying interest. 

However, overall activity remained subdued amid thin trading volumes, resulting in the yield curve staying broadly stable. 

Among the maturities traded, the 01.05.2028 bond was quoted at 9.03 percent. In the 2029 segment, the 15.09.2029, 15.10.2029 and 15.12.2029 maturities traded within a narrow range of 9.39 percent-9.40 percent. 

In the 2030 bucket, the 01.03.2030 and 01.07.2030 maturities were seen at 9.47 percent and 9.48 percent, respectively. 

Further along the curve, the 01.10.2032 and 15.12.2032 bonds traded at 10.10 percent. Within the 2033 maturities, the 01.06.2033 bond traded at 10.35 percent, while the 01.11.2033 maturity was transacted at 10.40 percent. 

Meanwhile, the 15.06.2034 bond was seen at 10.62 percent. At the longer end of the curve, the 15.06.2035 maturity was quoted at 10.74 percent. 

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.309.31/US dollar, compared to Rs.309.35/US dollar recorded the previous day. 

Overnight liquidity in the banking system contracted to Rs.333.76 billion, from Rs.341.02 billion recorded previously.