Slight selling despite dry sentiment

By First Capital Research
The secondary market yield curve slightly ticked high, as a slight selling pressure emerged on the belly end of the curve. Accordingly, liquid tenors 2026, 2027 and 2028 saw some activities with 15.05.2026 trading at 11.20 percent. 
Further, 15.12.2026 hovered between 11.32 percent -11.35 percent whilst on the 2027 tenor, 01.05.2027 and 15.09.2027 recorded transactions at 11.78 percent and 12.01 percent, respectively. 
Moreover, 15.03.2028 enticed trades at 12.15 percent whilst 01.07.2028 and 15.12.2028 closed at 12.20 percent and 12.13 percent respectively. 
However, investor participation remained dreary and volumes were thin, as concerns on the external debt restructuring and bondholder negotiations has created uncertainty. 
On the external side, LKR depreciated against the USD to close at Rs. 300.9. Meanwhile, overnight liquidity stood at Rs. 155.3bn and CBSL holdings remained stagnant at Rs. 2,675.6bn.