Secondary market records mixed activity

By First Capital Research

The secondary market witnessed mixed sentiment yesterday, with selling pressure concentrated at the short end of the yield curve, while buying interest emerged in longer-dated maturities. 

Meanwhile, yields across the belly to the long end edged marginally higher following Monday’s bond auction. Both local and foreign banks remained active participants in the market.

Among the traded maturities, 01.08.2030 and 15.10.2030 traded in the 11.50%–11.59% range at the short end. In the belly of the curve, 01.11.2033 traded at 11.90%, while 15.06.2034 and 15.10.2034 changed hands between 12.00%–12.05%. At the long end, 01.07.2037 attracted buying interest and traded at 12.60%.

On the external front, the LKR depreciated against the USD, standing at Rs. 336.22/USD, compared to Rs. 335.76/USD seen earlier. Overnight liquidity in the banking system contracted to Rs. 151.99bn from Rs. 152.35bn recorded previously.