Yield curve holds firm amid mixed investor sentiment

By First Capital Research

The secondary market withstood a quiet day yesterday amid thin trading volumes and limited investor activity. Contrary to yesterday’s modest selling pressure, investors showcased a mixed stance prompting the yield curve to remain largely anchored. 

At the short end of the yield curve, 15.09.2027 traded at 11.00% while 01.07.2028 changed hands at 11.50%. Moving ahead, 15.09.2029 and 01.03.2030 were seen trading at 12.00% and 12.10% respectively. Finally, 15.06.2034 traded at 13.12%. 

On the external front, the LKR depreciated against the USD, standing at Rs. 331.58/USD, compared to Rs. 329.22/USD seen earlier. Overnight liquidity in the banking system expanded to Rs. 103.56Bn from Rs. 102.46Bn recorded previously.