Slight selling pressure leads yield curve to uptick

By First Capital Research
Market participants in the secondary market shifted to a selling stance, moving away from the buying interest seen the previous day, resulting in a slight uptick in the yield curve and moderate trading volumes. Investor focus remained on the maturities between 2028 and 2032. Specifically, 15.02.28, 15.03.28 and 15.10.28 bonds traded at rates of 10.10 percent, 10.15 percent and 10.35 percent, respectively. 
The 15.09.29 bond traded at a rate of 10.74 percent to 10.76 percent, while the 15.10.30 bond saw a trade at 11.25 percent. On the longer end, 01.07.32 bonds traded within a range of 11.48 percent to 11.50 percent. In the forex market, the LKR depreciated against the USD, closing at LKR 297.58/USD, compared to LKR 296.55/USD the previous day. 
The Central Bank holdings of government securities remained unchanged, closing at LKR 2,511.92Bn. Overnight liquidity in the banking system decreased to LKR 161.96Bn, from LKR 194.56Bn the day before.