Long end sustains selling pressure, yields edge slightly up

By First Capital Research

Yesterday the market witnessed some selling activity, particularly at the long end of the curve, which in turn prompted a marginal upward adjustment in the yield curve amid moderate volumes.

At the short end of the yield curve, 15.02.2028, 15.03.2028 and 01.05.2028 traded between 8.98% to 9.05%. 

Moving ahead, 15.06.2029 traded at 9.40% while 01.03.2030 and 01.07.2030 were seen changing hands at 9.54% and 9.55% respectively. 01.10.2032 maturity was seen trading at 10.25% while 01.06.2033, 15.06.2034 and 15.06.2035 traded at 10.50%, 10.70% and 10.80% respectively. 

Finally, at the long end of the yield curve, 01.07.2039 was seen changing hands at 10.90%. On the external front, the LKR depreciated against the USD, closing at Rs. 309.38/USD compared to Rs. 309.32/USD recorded the previous day. Overnight liquidity in the banking system expanded slightly to Rs. 283.22bn from Rs. 282.43bn recorded previously.