Tepid trading conditions persist, yields hold steady

By First Capital Research

The subdued tone seen over the past week extended into yesterday’s session. Nonetheless, activity registered a modest improvement relative to yesterday, although volumes remained below normal levels. 

The yield curve remained anchored, as investors continued to await clearer direction on global political developments and their implications for the Sri Lankan economy.

Among the maturities traded yesterday, 01.07.2030 changed hands at 10.18% while 15.03.2031 traded at 10.25%. Further ahead on the curve 01.11.2033 and 15.06.2034 were seen trading at 11.02% and 11.15% respectively. Finally, 01.07.2037 traded at a rate of 11.25%.

On the external front, the LKR depreciated against the USD, standing at Rs. 317.92/USD, compared to Rs. 317.75/USD seen on Monday. Liquidity in the banking system expanded to Rs. 231.90bn from Rs. 219.28bn recorded previously.