Bond market activities moderate

The secondary market yield curve remained broadly unchanged, with limited activity observed.
The robust buying sentiment seen during the previous sessions toned down during the day, as the investors took a cautious approach. 
As a result, mixed sentiment was observed on the short to mid end of the curve, where the 2026 maturities: May 15, 2026, June 01, 2026 and August 01, 2026, registered trades between 10.90 percent and 11.00 percent while March 15, 2028, July 01, 2028 and December 15, 2028 hovered between 12.05 percent and 12.10 percent. 
Moreover, limited activities enticed on the 2030 maturities, which changed hands between 12.25 percent and 12.40 percent. 
On the external side, the Sri Lankan rupee marginally appreciated against the US dollar, closing at Rs.313.4 during the day.

Moreover, the weekly average weighted prime lending rate for the week ending February 16, 2024 decreased by 22 basis points to 11.61 percent compared to the previous week.
Further, the foreign holding of government securities for the week ending February 15, 2024 closed at Rs.113.6 billion, recording a decline of Rs.7.5 billion (-6.8 percent wee-on-week) amidst the steep fall in interest rates.