Buying interest emerges, pushing yield curve slightly lower

By First Capital Research

The secondary market yield curve saw renewed buying interest yesterday, supported by foreign participation, which generated moderate trading volumes. 

Among the limited transactions recorded, the 15.02.2028, 01.05.2028, and 01.07.2028 maturities traded between 9.25% and 9.20%. 
The 15.06.2029 and 01.07.2030 maturities changed hands at 9.50% and 9.70%, respectively, while the 15.12.2032 maturity traded within the range of 10.25% to 10.30%. Further along the curve, the 01.06.2033 and 01.11.2033 maturities traded within a range of 10.49% to 10.60%.

On the external front, the LKR slightly appreciatedagainst the USD, closing at Rs. 308.61/USD compared to Rs. 308.66/USD seen previously. Overnight liquidity in the banking system expanded to Rs. 101.4mn from Rs. 85.7mn recorded on the previous day.