Yield curve holds steady amid moderate secondary market activity

By First Capital Research 

The secondary market witnessed moderate trading activity yesterday, with volumes remaining limited. Amid the subdued participation, the overall yield curve showed little movement.

At the shorter end, bonds maturing on 15.02.2028 and 15.03.2028 traded within the 8.80% to 8.83% range, while 01.05.2028 and 01.07.2028 maturities saw yields between 8.84% and 8.90%. In the 2029 segment, the 15.06.2029 maturity traded at 9.35%, and the 15.12.2029 bond ranged from 9.45% to 9.48%.

Further along the curve, 15.03.2031 traded between 9.95% and 10.25%.Finally, the 15.12.2032 maturity closed at 10.31%.

In the forex market, the LKR depreciated against the greenback, closing at Rs. 301.8/USD, compared to the previously seen rate of Rs. 301.5/USD. 

Meanwhile, overnight liquidity in the banking system expanded to Rs. 106.1bn from the previously seen level of Rs. 105.9bn.