Short and mid-term trades dominate as yield curve holds steady

By First Capital Research

The secondary market posted a mixed sentiment while the trading volumes stood at moderate levels during yesterday’s session. 

Trades were concentrated on the short and mid tenures, while the yield curve stayed steady. 

On the short end, 15.02.2028, 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028, 15.10.2028 and 15.12.2028 traded within 8.95 percent-9.10 percent. In terms of the 2029 maturities, 15.06.2029, 15.09.2029, 15.10.2029 and 15.12.2029 traded in the range of 9.35 percent-9.45 percent. 

Moving ahead, 01.03.2030, 01.05.2030 and 01.07.2030 changed hands within a narrow range of 9.49 percent-9.53 percent. Moreover, 15.03.2031 was dealt at 9.70 percent and 01.10.2032 was traded between 10.10 percent-10.13 percent. 

Additionally, the 01.06.2033 and 01.11.2033 maturities changed hands at 10.37 percent and 10.38 percent, respectively. 

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.309.21/US dollar, compared to Rs.309.35/US dollar recorded the previous day. Overnight liquidity in the banking system contracted to Rs.270.99 billion, from Rs.299.68 billion recorded previously.