Buying interest supports secondary market as mid to long-term yields ease

By First Capital Research

The secondary market recorded moderate trading volumes, with buying interest evident, while yields across the mid to long-term tenures edged slightly lower.

In terms of activity, the 01.08.2026 tenure traded at 8.30 percent. Within the 2027 segment, the 15.09.2027 and 15.12.2027 maturities traded in the range of 8.97 percent–9.00 percent. Moving into 2028, the 01.07.2028, 15.10.2028 and 15.12.2028 tenures were seen trading between 9.15 percent–9.20 percent. 

In the 2029 segment, the 15.10.2029 and 15.12.2029 maturities traded within the 9.60 percent–9.67 percent range. For the 2030 maturities, the 01.03.2030, 15.05.2030 and 01.07.2030 tenures traded between 9.68 percent–9.70 percent. Further along the curve, the 15.03.2031 maturity traded at 9.95 percent, while the 15.05.2031 tenure traded between 10.10 percent–10.12 percent. The 01.10.2032 and 15.12.2032 maturities traded in the range of 10.27 percent–10.31 percent, followed by the 01.06.2033 tenure at 10.65 percent–10.66 percent. At the long end, the 15.06.2035 maturity traded between 10.98 percent–11.01 percent.

On the external front, the Sri Lankan rupee slightly depreciated against the US dollar, closing at Rs.309.80/US dollar, compared to Rs.309.68/US dollar recorded the previous day. Overnight liquidity in the banking system expanded to Rs.166.13 billion, from Rs.157.54 billion recorded previously.