Sustained buying interest nudges mid and long-tenure yields down

By First Capital Research

The week began with sustained buying interest in the secondary market, amidst moderate trading volumes. 

Against this backdrop, some mid and long-tenure maturities saw yields edge down.

In the short-term segment, 15.02.2028 traded at 9.00 percent, while both 01.05.2028 and 01.07.2028 traded in the range of 9.03 percent-9.06 percent. Additionally, 15.10.2028 traded at 9.14 percent. Moving along, 15.12.2029 changed hands at 9.55 percent. 

Further, in the mid-term cluster, 01.03.2030, 01.03.2031, 15.12.2032, 01.06.2033 and 15.06.2034 traded at 9.65 percent, 9.88 percent, 10.18 percent, 10.50 percent and 10.70 percent, respectively. 

Over the long-term maturities, 15.06.2035, 01.07.2037 and 15.08.2039 traded at 10.80 percent, 10.98 percent and 11.02 percent, respectively. 

On the external front, the Sri Lankan rupee appreciated against the US dollar, closing at Rs.309.38/US dollar, compared to Rs.309.46/US dollar recorded the previous day. Overnight liquidity in the banking system slightly expanded to Rs.278.20 billion, from Rs.275.19 billion recorded previously.