Trading picks up marginally; yield curve stays anchored

By First Capital Research

The secondary market activity showed a modest uptick, with investor interest observed across multiple maturities. 

The trading volumes remained below typical levels, although a marginal improvement was visible, especially compared to the ultra-thin volumes seen earlier in the week. 

Investor sentiment remained mixed, as market participants continue to await clearer signals on the evolving global backdrop.

At the short end of the curve, 15.06.2029 traded at 9.95 percent. Moving ahead, 15.03.2031 was seen trading at 10.25 percent while 15.12.2032 changed hands at 10.82 percent. 

Finally, 01.06.2033 and 15.06.2035 traded at 10.99 percent and 11.20 percent, respectively. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, standing at Rs.317.17/US dollar, compared to Rs.316.78/US dollar seen the previous day. 

Liquidity in the banking system expanded to Rs.199.17 billion, from Rs.167.46 billion recorded previously.