Subdued trading activity contributes to static yield environment

By First Capital Research

The secondary market continued to exhibit subdued momentum yesterday, with limited investor participation keeping yields broadly unchanged.

Trading was largely confined to the short end, where the 15.05.2026 maturity saw transactions in the 8.05% to 8.10% range. 

Moving ahead, the 01.07.2028 maturity was quoted at 8.97%. Finally, both15.10.2029 and 15.12.2029 traded narrowly between 9.43% and 9.45%.

In the forex market, the LKR depreciated against the greenback, closing at Rs. 302.2/USD compared to Rs. 302.0/USD seen previously.

Meanwhile, overnight liquidity in the banking system expanded to Rs. 135.7bn from the previously seen level of Rs. 111.6bn.