Yield curve unchanged, with foreign buying in 2030

By First Capital Research 

Yesterday’s session saw mixed activity on moderate volumes, with the yield curve remaining broadly unchanged.

In the short tenures, the 2028 maturities attracted the buying interest from the domestic banks, although the trading volumes remained modest, resulting in an approximate 5bps decline in the yields. 

Consequently, the 15.02.2028, 15.03.2028, 01.05.2028 and 01.07.2028 maturities traded in the 10.50 percent-10.60 percent range. 

Moving further along the curve, 15.12.2029 was seen trading at 11.00 percent. 

Trading activity was especially visible in the 2030 segment, with 01.03.2030 and 15.05.2030 trading at 11.10 percent and 11.22 percent, respectively while 01.07.2030 and 01.08.2030 both traded at 11.25 percent. 

The 15.10.2030 maturity attracted the buying interest from the foreign investors and traded at 11.30 percent. 

Finally, the 15.12.2032 maturity was seen changing hands at 11.60 percent.

On the external front, the Sri Lankan rupee appreciated against the US dollar, standing at Rs.334.95/US dollar, compared to Rs.335.26/US dollar seen earlier. 

Liquidity in the banking system expanded marginally to Rs.134.77 billion, from Rs.132.29 billion recorded previously.

Popular maturities traded: 15.10.2030: 11.30 percent (unchanged)