War clouds continue but yield curve shows no shift

By First Capital Research 

Increasing concerns over looming global uncertainty have left secondary market participants cautious, with investors adopting a wait-and-see approach. As a result, the yield curve held its breath, witnessing low volumes and minimal market activity. 

However, amongst the traded maturities 01.05.2028, 01.07.2028, 15.10.2028, 15.12.2028, 15.09.2029 and 15.12.2032 changed hands at the rates of 8.88%, 8.90%, 8.92%, 8.95%, 9.48% and 10.32% respectively. 

In the forex market, the LKR depreciated against the greenback, closing at Rs. 300.0/USD, compared to the previously seen rate of 299.4/USD. 

Meanwhile, overnight liquidity in the banking system contracted to Rs. 122.9bn from Rs. 131.9bn in the previous session.

On a positive note, recently released data from the Census and Statistics Department shows that GDP grew by 4.8% YoY in 1Q2025.