Secondary market opens strong with active buying

By First Capital Research

The secondary market began the week with a sustained buying sentiment, echoing the momentum seen in previous sessions. 

Market participants remained actively engaged, driving increased trading volumes.

On the short end of the curve, 15.02.2028, 15.03.2028, 01.07.2028 and 15.10.2028 traded within the 9.50 percent-9.25 percent range. Moving ahead on the yield curve, 15.06.2029, 15.09.2029 and 15.12.2029 traded between 10.00 percent and 9.85 percent while the 15.05.2030 maturity traded within the 10.10 percent-10.00 percent range. 

Meanwhile, 15.03.2031 changed hands between the rates of 10.45 percent to 10.30 percent while 15.12.2032 was seen trading at 10.50 percent.  

The Central Bank has announced an upcoming T-bond auction scheduled for May 29, 2025, through which it aims to raise a total of Rs.200.0 billion. The funds will be secured across three maturities: 2028, 2029 and 2034. 

Specifically, Rs.40.00 billion will be raised through the 2028 maturity, offering a coupon rate of 9.00 percent. Meanwhile, the 2029 and 2034 maturities will each raise Rs.80.0 billion, with the coupon rates set at 11.00 percent and 10.25 percent, respectively.

In the forex market, the Sri Lankan rupee appreciated marginally 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 expanded to Rs.192.2 billion, from Rs.157.8 billion in the previous session.