Yield curve stays static amid mixed investor sentiment

By First Capital Research

Moderate volumes and mixed investor sentiment marked the opening of the new week. 

Activity was predominantly visible on the short to mid segment of the yield curve. However, the yield curve was seen remaining largely static by the end of yesterday’s session. 

At the short end of the curve, 15.09.2027 traded at 9.00 percent. The 2028 maturities attracted noteworthy activity with 15.01.2028 and 15.03.2028 both trading at 9.20 percent and 15.02.2028 trading lower at 9.17 percent while 01.05.2028 and 01.09.2028 were seen changing hands at 9.25 percent and 9.30 percent respectively. 

Moving ahead, 15.05.2030 and 01.07.2030 both traded at 9.78 percent. Finally, 01.07.2032 was seen trading at 10.80 percent while 01.10.2032 traded lower at 10.53 percent. 

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.303.77/US dollar, compared to Rs.303.61/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.135.06 billion, from Rs.129.13 billion recorded the previous day.