Belly end yields ease slightly

By First Capital Research

The secondary market yield curve reflected mixed sentiment yesterday, with moderate trading volumes and diverse activity across maturities. Yields edged lower, particularly at the belly end of the curve.

At the short end of the curve, the 15.01.2028 and 15.03.2028 maturities traded at 9.17%. 

Meanwhile, other 2028 maturities, 01.05.2028, 01.07.2028, and 15.10.2028, traded at the rates of 9.20%, 9.25%, and 9.26%, respectively. 

Further along the curve, the 15.10.2029, 15.05.2030, 01.07.2030, 15.03.2031, and 01.07.2032 maturities changed hands at the rates of 9.68%, 9.74%, 9.77%, 10.15%, and 10.75%, respectively.

On the external front, the LKR depreciated against the USD, closing at Rs. 304.0/USD compared to Rs. 303.8/USD seen previously. Overnight liquidity in the banking system expanded to Rs. 144.3Bn from Rs. 135.1bn recorded the previous day.