Secondary market records higher volumes amid sustained buying interest

By First Capital Research

The secondary market continued to experience broad-based buying interest yesterday, with trading volumes remaining elevated. 

This activity resulted in a modest shift in the yield curve.In the 2028 segment, the 15.02.2028, 01.05.2028, 01.07.2028, 01.09.2028, and 15.10.2028 maturities traded within a yield range of 8.97% to 9.10%. 

Moving further along the curve, the 01.05.2029 maturity traded at 9.50%, while the 15.06.2029 maturity changed hands at 9.45%.  Meanwhile, the 15.09.2029, 15.10.2029, and 15.12.2029 maturities were observed trading between 9.50% and 9.51%. Within the 2030 segment, the 01.03.2030 maturity traded at 9.65%, while the 01.07.2030 maturity traded slightly higher at 9.68%. 

Further out, the 15.03.2031 maturity traded at 9.88%, followed by the 01.10.2032 maturity at 10.20%.In the longer tenors, the 2033 segment saw the 01.06.2033 maturity trading at 10.55% and the 01.11.2033 maturity at 10.60%.  Further along the yield curve, the 15.06.2034 maturity traded at 10.70%, while the 15.06.2035 maturity was traded at 10.80%. On the external front, the LKR appreciated against the USD, closing at Rs. 309.46/USD compared to Rs. 309.51/USD recorded the previous day. Overnight liquidity in the banking system expanded to Rs. 275.19bn from Rs. 219.15bn recorded previously.