Mixed sentiment continues to prevail in the secondary market

By First Capital Research 

Secondary market sentiment remained mixed, largely in line with the previous session, with the yield curve broadly unchanged. Buying interest emerged in the long-tenor segment, while the shorter end of the curve witnessed some selling pressure ahead of tomorrow’s bond auction. Trading activity was mainly concentrated among primary dealers and banking sector participants.

In terms of market activity, the 15.03.2028 maturity traded at 10.60%, while the 15.11.2029 maturity changed hands at 10.95%. Further along the curve, the 01.08.2030 maturity was seen trading at 11.22%. 

At the longer end, the 15.03.2035 maturity traded at 11.85%, while the 15.08.2036 maturity changed hands within the 12.01%-11.98% range.

On the external front, the LKR depreciated against the USD, standing at Rs. 336.57/USD, compared to Rs. 334.77/USD seen earlier. Liquidity in the banking system slightly expanded to Rs. 65.36bn from Rs. 61.04bn recorded previously.

Popular maturities traded during the day: 15.03.2028:(Unchanged), 01.08.2030: (Unchanged), 15.08.2036: (+5bps).