Selling activity continues as yield curve edges up slightly

By First Capital Research

Building on the previous day’s selling sentiment, the secondary market yield curve saw slight selling pressure, leading to moderate volumes and activity. 

Consequently, the yield curve edged upward slightly from short to belly end. 

Among the traded maturities, the 01.05.2027 maturity traded between the rates of 8.50 percent to 8.55 percent, while the 15.09.2027 bond traded between the rates of 8.60 percent and 8.65 percent. 

Further along the curve, the 01.05.2028 maturity changed hands at a rate of 8.90 percent. Additionally, the 15.10.2028 and 15.12.2028 bonds traded between 9.00 percent and 9.05 percent. 

Meanwhile, the 15.09.2029 and 15.10.2029 maturities changed hands at rates between 9.45 percent and 9.50 percent. Furthermore, the 01.07.2030 and 15.03.2031 bonds traded at rates of 9.55 percent and 9.92 percent, respectively.

In the forex market, the Sri Lankan rupee depreciated marginally against the greenback, closing at Rs.302.45/US dollar, compared to Rs.302.33/US dollar seen previously.  Meanwhile, overnight liquidity in the banking system expanded to Rs.146.5 billion, from the previously seen level of Rs.143.2 billion.