Post-cyclone caution continues to shape market tone

By First Capital Research
The caution lingering after the cyclone continued to weigh on the secondary market. Mixed sentiment was apparent yesterday, but a calculated selling bias ultimately prevailed, with volumes remaining thin.
Amongst the limited trades executed today, the short end saw 15.02.2028 and 01.05.2028 changing hands at 9.20% and 9.25% respectively. 
Moving ahead, 15.03.2031 was seen trading at 10.05%. Finally, 01.06.2033 traded at a rate of 10.60% and 01.11.2033 traded higher at 10.65%. 
On the external front, the LKR depreciated against the USD, closing at Rs. 308.85/USD compared to Rs. 308.83/USD seen previously. Overnight liquidity in the banking system contracted to Rs. 96.9mn from Rs. 102.8mn recorded on the previous day.