Yields soften further on sustained trading strength

By First Capital Research

The strong buying interest observed on Thursday continued into yesterday’s session, exerting consistent downward pressure on yields across the curve.

Market participants remained active and engaged, with the secondary market recording substantial trading volumes and heightened activity, underscoring sustained investor demand.

On the short end of the yield curve, the 15.09.2027 maturity traded at 9.10 percent. In terms of the 2028 maturities, 15.02.2028, 15.03.2028, 01.05.2028, 01.07.2028 and 15.10.2028 traded within the range 9.45 percent to 9.65 percent. 

Moving ahead on the yield curve, the 15.06.2029 maturity traded at 9.95 percent while the 15.09.2029 and 15.12.2029 maturities traded at 10.00 percent. 

Meanwhile, the 15.05.2030 and 15.10.2030 maturities were seen trading at 10.10 percent and 10.15 percent, respectively. 

Finally, the 15.03.2031 maturity changed hands at 10.45 percent while 01.07.2032 and 01.11.2033 traded at 10.65 percent and 10.75 percent, respectively. 

In the forex market, the Sri Lankan rupee appreciated against the greenback, closing at Rs.299.4/US dollar, compared to the previously seen rate of Rs.299.8/US dollar. 

Meanwhile, overnight liquidity in the banking system contracted to Rs.157.8 billion from Rs.173.7 billion in the previous session.