Investor interest spans across short to mid end maturities

By First Capital Research
The secondary market yield curve saw buying interest, with mixed trading activity. 
Investor focus was primarily on maturities in 2026, 2027, 2028 and 2030. At the short end, there was notable buying interest, with the one-year bond trading at 8.65 percent. The bonds maturing on 15.05.26, 01.06.26 and 01.08.26 traded in the range of 9.00 percent to 8.95 percent and the 15.12.26 bond traded at 9.20 percent. Meanwhile, the 15.01.27 maturity traded at 9.30 percent. The 2028 maturities saw mixed activity, with the 15.01.28 bond trading at 10.18 percent and 15.03.28 bond trading within a range of 10.18 percent to 10.15 percent. The 01.05.28 and 01.07.28 bonds traded between 10.30 percent and 10.35 percent, while the 15.05.30 bond traded at 11.15 percent.
Meanwhile, on the external front, the Sri Lankan rupee further depreciated against the US dollar closing at Rs.296.5/US dollar compared to Rs.295.2/US dollar recorded the previous day. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,511.92 billion yesterday. Overnight liquidity in the banking system expanded to Rs.126.30 billion, from Rs.131.47 billion recorded the previous day.