Thin trading keeps secondary market yield curve stable

By First Capital Research

The secondary market yield curve saw very limited activity with thin trading volumes, resulting in the yield curve remaining broadly unchanged. 

Among the few maturities traded, the 15.09.2027 and 01.09.2028 bonds were exchanged at yields of 8.50% and 9.04%, respectively. 

Moving further along the yield curve, the 15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 maturities traded at yields of 9.47%, 9.49%, 9.50%, and 9.55%, respectively.

Meanwhile, the Central Bank of Sri Lanka announced a bond auction totalling LKR 122.0Bn, scheduled for 29th July 2025. The auction aims to raise LKR 90.0Bn from the 2030 maturity and LKR 32.0Bn from the 2037 maturity.

In the forex market, the LKR depreciated marginally against the greenback, closing at LKR 301.9/USD, compared to the previously seen rate of LKR 301.8/USD. 

Meanwhile, overnight liquidity in the banking system expanded to LKR 102.9Bn from the previously seen level of LKR 93.9Bn.