Short-tenor appetite sparks mixed swings

By First Capital Research

Building on the mixed sentiment from the previous day, market participants continued to adopt a mixed stance yesterday, with investor interest largely centered around short to mid-tenor maturities. 

Overall market activity remained mixed, resulting in moderate trading volumes.

Amongst the traded maturities, on the short end of the curve, 01.05.2027 and15.09.2027 traded within the 8.50% to 8.73% range. 

In terms of 2028 maturities, 15.02.2028, 15.03.2028, 01.07.2028 and 01.10.2028 changed hands between 8.82% to 9.02%. Moving ahead on the yield curve, 15.06.2029, 15.09.2029 and 15.12.2029 traded between 9.49%-9.65%. 

In the forex market, the LKR depreciated marginally against the greenback, closing at Rs. 299.6/USD, compared to the previously seen rate of 299.4/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 156.7bn from Rs. 149.9bn in the previous session.