Secondary market yields trending upward

By First Capital Research

The selling trend in the secondary market continued during the day, resulting yields to increase slightly by about 5-10bps across the yield curve.

Market activity and volumes remained moderate. 

At the short end of the curve, the 15.10.2027 bond traded at 9.55 percent, while the 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028, 15.10.2028 and 15.12.2028 maturities traded at 10.00 percent, 10.05 percent, 10.10 percent, 10.15 percent, 10.20 percent and 10.30 percent, respectively. 

Meanwhile, the 15.06.2029 and 15.12.2029 bonds were traded at 10.40 percent and 10.45 percent. Additionally, the 01.10.2032 and 15.09.2034 bonds recorded rates of 10.95 percent and 11.00 percent, respectively.

In the forex market, the Sri Lankan rupee appreciated against the greenback and stood at Rs.296.3/US dollar, compared to Rs.296.5/US dollar recorded on the previous day. 

Meanwhile, overnight liquidity in the banking system expanded to Rs.184.3 billion, from Rs.152.8 billion recorded on the previous day. The Census and Statistics Department of Sri Lanka released the monthly CCPI inflation for March 2025, which stood at -2.6 percent, up from       -4.2 percent in February 2025. 

The reduction in deflation was primarily driven by food commodities.