Selling stance pushes the yield curve up

By First Capital Research

In the secondary market yesterday, participants maintained their selling stance from the past few days, pushing the yield curve higher than the previous week. This resulted in moderate trading volumes and activity.

Accordingly, at the mid end of the curve, 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 maturities traded in the range 9.80% to 9.97%. 

Furthermore, 15.10.2028 and 15.12.2028 traded within the range of 10.00% to 10.20%. Meanwhile 2029 maturities, 15.09.2029, 15.06.2029 and 15.12.2029 traded within the range of 10.20% to 10.40% and 15.12.2032 bond traded within the range of 10.82% to 10.75%. 

In the forex market, the LKR appreciated against the greenback and stood at Rs. 296.5/USD, compared to 296.6/USD recorded on the previous day. Meanwhile, overnight liquidity in the banking system contracted to Rs. 152.8bn from Rs. 167.0bn recorded on the previous day.