Buying momentum drives yields lower across board

By First Capital Research
As the secondary market opened for the first time since the unveiling of the budget for 2026, the investors demonstrated acute buying interest, pushing the yield curve down across the board. 
Yesterday was also marked by relatively high trading volumes as a result of which noteworthy activity was visible across most maturities. 
At the short end of the curve, the 2028 maturities traded between 8.90 percent to 9.00 percent while the 2029 maturities were seen trading between 9.35 percent to 9.40 percent. Moving ahead, the 01.07.2030 maturity traded at 9.60 percent while the 15.03.2031 maturity changed hands at a rate of 9.85 percent. Moreover, the 2032 maturities were seen trading between 10.35 percent to 10.40 percent and finally, 01.11.2033 traded higher at 10.50 percent. 
On the external front, the Sri Lankan rupee depreciated marginally against the US dollar, closing at Rs.304.96/US dollar compared to Rs.304.95/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.142.5 billion, from Rs.118.3 billion recorded on the previous day.