Selling pressure mounts on short end with minimal curve movement

By First Capital Research

The secondary market saw mixed sentiment with moderate trading volumes and activity. Selling pressure was noted on the short end of the yield curve, where maturities such as 01.08.2026 and 15.12.2026 were traded within a yield range of 8.30% to 8.35%.

Towards the belly end of the curve, maturities including 01.05.2028, 01.07.2028, 15.10.2028, and 15.12.2028 changed hands within a range of 9.20% to 9.30%. 

Further along the curve, bonds maturing on 15.06.2029, 15.10.2029, and 15.12.2029 were traded between the rates of 9.65% to 9.70%. Further along the curve, the 01.07.2030 maturity traded at 9.80%, while the 01.11.2033 maturity saw trades at 10.72%.

On the external front, the LKR appreciated against the USD, closing at Rs. 302.60/USD vs. Rs. 302.68/USD seen previously. Overnight liquidity in the banking system expanded to Rs. 171.02bn from Rs. 167.2bn recorded the previous day.