Secondary market sees steady yield curve amid mixed sentiment

By First Capital Research

The secondary market saw mixed sentiment, with higher volumes transacted at prevailing levels, leaving the overall yield curve largely stable. 

In the 2029 segment, the 15.06.2029, 15.09.2029, 15.10.2029 and 15.12.2029 maturities traded within a range of 9.35 percent-9.44 percent. In the subsequent bucket, the 01.03.2030, 15.05.2030 and 01.07.2030 maturities were dealt in the 9.50 percent-9.52 percent range. Further along the curve, the 01.10.2032 maturity traded at 10.10 percent, while the 01.06.2033 and 01.11.2033 maturities changed hands between 10.35 percent and 10.40 percent. In the mid-to-long tenor, the 15.06.2034 and 15.09.2034 maturities traded in the 10.58 percent-10.60 percent range. At the longer end, the 15.06.2035, 01.07.2037 and 15.08.2039 maturities were transacted at 10.68 percent, 10.80 percent and 10.92 percent, respectively. On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.309.35/US dollar, compared to Rs.309.39/US dollar recorded the previous day. Overnight liquidity in the banking system marginally expanded to Rs.299.68 billion from Rs.296.71 billion recorded previously.