Steady yields persist amid moderate trading volumes

By First Capital Research

The secondary market saw buying interest concentrated in the short to mid-tenure space, while the 2033 and 2035 maturities experienced a mixed sentiment.

Overall, the yields were largely stable, with moderate trading volumes observed during the session.

At the short end of the curve, the 15.03.2028 maturity traded at 9.05 percent, while the 01.07.2028, 01.09.2028 and 15.12.2028 maturities traded in the 9.15 percent-9.20 percent range. In the 2029 segment, both the 15.10.2029 and 15.12.2029 maturities traded between 9.70 percent and 9.75 percent. Further along the curve, the 01.07.2030 maturity was seen trading in the 9.80 percent-9.83 percent band. Within the 2033 segment, the 01.06.2033 and 01.11.2033 maturities traded at 10.50 percent, while the 15.06.2035 maturity traded at 10.75 percent.

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.309.54/US dollar, compared to Rs.309.98/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.134.5 billion, from Rs.128.1 billion recorded previously.