Yield curve continues to decline as week ends

By First Capital Research

The secondary market closed the week with continued buying interest from previous days, resulting in high trading volumes and activity. 

Amongst the traded maturities, at the short end, the 2026 and 2027 maturities were traded within a range of 10.05 percent to 9.40 percent. 2028 maturities, the 15.02.2028, 15.03.2028 and 01.05.2028 bonds were traded between 9.65 percent and 9.55 percent, while the 01.07.2028, 01.09.2028, 15.10.2028 and 15.12.2028 bonds saw trades within the range of 9.90 percent to 9.75 percent. 

Additionally, the 15.06.2029 and 15.09.2029 bonds were traded between 10.05 percent and 10.00 percent. Furthermore, the 15.12.3032 bond traded within the range of 10.60 percent and 10.50 percent and towards the long end, the 01.06.2033 bond traded between 10.85 percent to 10.65 percent.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.296.0/US dollar in comparison to Rs.296.0/US dollar.

The Central Bank holdings of government securities remained stagnant at Rs.2,511.9 billion. Overnight liquidity of the banking system contracted to Rs.156.0 billion, from Rs.179.0 billion recorded the previous day.