Market momentum persists amid mixed sentiment

By First Capital Research

The secondary market sustained its positive momentum from the previous session, with investor sentiment remaining mixed and trading volumes holding at moderate levels. 

Activity was concentrated across the short to mid segment of the curve, while the overall yield curve remained broadly unchanged.

At the short end of the curve, the 15.01.2027, 01.05.2027 and 15.09.2027 maturities were seen trading at yields of 8.35 percent, 8.77 percent and 8.89 percent, respectively. 

Moving to the 2028 segment, the 15.02.2028 maturity transacted at 9.18 percent, the 15.03.2028 maturity at 9.20 percent, the 01.07.2028 maturity at 9.25 percent and the 01.09.2028 maturity at 9.30 percent. 

Further along the curve, the 15.09.2029 bond changed hands at 9.70 percent, while the 15.10.2029 bond traded at 9.72 percent. Among the 2030 maturities, the 15.05.2030 and 01.07.2030 issues traded at 9.76 percent and 9.78 percent, respectively. Lastly, towards the mid end of the curve, the 15.03.2031 maturity changed hands at 10.10 percent.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.303.61/US dollar, compared to Rs.303.26/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.129.13 billion, from Rs.123.3 billion recorded the previous day.