Tepid trading keeps yield curve stable as week begins

By First Capital Research

The secondary market saw thin trading volumes, leading to a stable yield curve as activity remained subdued.

Among the traded maturities, the bonds maturing on 01.05.2028 and 15.12.2028 exchanged hands at rates of 9.00 percent and 9.05 percent, respectively. Further along the yield curve, the 15.06.2029, 15.09.2029 and 15.12.2029 maturities traded at 9.40 percent, 9.48 percent and 9.50 percent, respectively. 

Meanwhile, 01.07.2030, 15.12.2032, 01.11.2033 and 15.06.2035 were traded at rates of 9.70 percent, 10.44 percent, 10.67 percent and 10.86 percent, respectively.

On the external front, the Sri Lankan rupee depreciated marginally against the US dollar, closing at Rs.302.4/US dollar, compared to Rs.302.1/US dollar recorded the previous day. 

Overnight liquidity in the banking system expanded to Rs.140.8 billion, from Rs.126.8 billion recorded the previous day. Additionally, for the week ending September 19, 2025, the average weighted prime rate (AWPR) declined by 6bps to 8.07 percent.