Yields slide on improved global sentiment

By First Capital Research

Amid easing global oil prices driven by optimism over potential peace negotiations in the Middle East conflict, the secondary market experienced renewed buying interest across the curve, resulting in a parallel decline in yields. Nevertheless, overall market activity remained muted, with trading volumes staying relatively thin during the session.

Among the traded maturities, at the short-end of the curve, the 15.10.2028 maturity traded at 9.75%. In the 2029 segment, the 15.09.2029 and 15.12.2029 maturities traded at 9.90% and 10.00%, respectively. Within the 2030 segment, the 15.03.2030 and 01.07.2030 maturities traded at 10.00% and 10.15%, respectively. Further along the curve, the 01.11.2032 and 01.11.2033 maturities traded at 10.70% and 11.00%, respectively, while the 15.06.2034 maturity traded at 11.20%.

On the external front, the LKR depreciated against the USD, standing at Rs. 320.45/USD, compared to Rs. 319.79/USD seen on Wednesday. Overnight liquidity in the banking system contracted to Rs. 249.98bn from Rs. 254.52bn recorded previously.