Mixed sentiment prevails as long-term tenures attract buyers

By First Capital Research

The secondary market yield curve experienced heightened trading activity and elevated volumes, with sentiment remaining mixed. 

However, buying interest was evident in longer-dated tenures, particularly the 2035 maturity, while the overall yield curve remained broadly stable.

Among the actively traded maturities, the 15.06.2029 and 15.09.2029 securities traded within a yield range of 9.70 percent-9.62 percent. The 15.05.2030 maturity traded at 9.79 percent, followed by the 15.03.2031 at 10.10 percent and 01.07.2032 at 10.75 percent. The long-end 15.06.2035 maturity traded within a range of 11.25 percent-11.15 percent.

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.309.3/US dollar, compared to Rs.309.1/US dollar recorded the previous day. Overnight liquidity in the banking system contracted to Rs.160.19 billion, from Rs.182.72 billion recorded previously.