Selling pressure on the belly lifts yield curve marginally

By First Capital Research

Reversing Wednesday’s subdued tone, the secondary market yield curve yesterday experienced selling pressure at the belly of the curve, leading to moderate activity and light volumes. As a result, the yield curve saw a modest uptick in the belly end of the curve.

Amongst the traded maturities, the 15.02.2028 and 15.12.2028 maturities traded at the rates of 8.80% and 9.00%, respectively, while the 15.09.2029, 15.10.2029, and 15.12.2029 bond maturities traded at 9.45%. Further along the curve, the 15.12.2032 maturity changed hands at a rate of 10.30%.

In the forex market, the LKR depreciated marginally against the greenback, closing at Rs. 302.33/USD compared to Rs. 302.30/USD seen previously.

Meanwhile, overnight liquidity in the banking system expanded to Rs. 143.2bn from the previously seen level of Rs. 134.9bn.