Uncertainty surrounding US tariff rates lingers; yield curve takes an uptick

By First Capital Research

Building on the previous day’s selling stance, participants in the secondary market adopted a selling sentiment, due to the ongoing uncertainties surrounding the US reciprocal tariff rates. 

As a result, the secondary market yield curve saw a slight uptick, accompanied by moderated market activity. 

Among the maturities traded, the 15.03.2028, 01.05.2028, 01.07.2028, 01.09.2028, 15.10.2028 and 15.09.2029 maturities were traded at the rates of 10.15 percent, 10.20 percent, 10.25 percent, 10.35 percent, 10.40 percent and 10.55 percent, respectively. 

In the forex market, the Sri Lankan rupee showcased a depreciation against the greenback, standing at Rs.296.9/US dollar in comparison to Rs.296.1/US dollar registered on the previous day. 

Meanwhile, overnight liquidity in the banking system rose to Rs.191.2 billion, from Rs.183.7 billion seen the previous day, whilst the Central Bank holdings of government securities remained stagnant.