Yield curve holds steady amid low volumes

By First Capital Research
The secondary market began the week with subdued trading volumes, leading to a generally stable yield curve, which showed little movement over the period.
At the shorter end of the curve, the 01.06.2026 bond saw trading at a yield of 8.20 percent, while the 15.03.2028 maturity traded slightly higher at 9.02 percent. Moving further out, the 01.07.2030 bond traded at 9.60 percent. On the longer end, the 15.09.2034 maturity exchanged hands at 10.58 percent and the 15.06.2035 bond was traded within a range of 10.65 percent to 10.70 percent.
On the external front, the Sri Lankan rupee slightly appreciated against the US dollar, closing at Rs.308.0/US dollar, compared to Rs.308.3/US dollar seen previously. Overnight liquidity in the banking system contracted to Rs.58.5 billion, from Rs.78.3 billion recorded on the previous day.