Mixed signals lead to measured moves

By First Capital Research

The secondary market yield curve witnessed mixed activity yesterday, with the yield curve remaining broadly unchanged, leading to moderate trading activity and volumes. Notably, trading was largely concentrated around 2028 to 2029 maturities. 

As result at the short end of the curve, 15.02.2028, 15.03.2028, 01.05.2028, 01.07.2028 and 15.10.2028 traded between the range of 8.85% to 8.70%. 

Moving ahead on the yield curve 15.05.2030, 15.10.2030, 15.03.2031, 01.11.2033, and 15.09.2034 traded at the rate of 9.55%, 9.65%, 9.95%, 10.40% and 10.45%, respectively. 

In the forex market, the LKR appreciated against the greenback, closing at Rs. 299.4/USD, compared to the previously seen rate of 299.5/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 197.4bn from Rs. 163.1bn in the previous session.