Yield curve holds steady as mixed sentiment continues

By First Capital Research

The secondary market saw mixed sentiment with low volumes and subdued activity, while the yield curve remained unchanged.

Among the traded maturities, 15.10.2029 and 15.12.2029 were seen trading at 9.50 percent. Meanwhile, some selling interest emerged in the 01.07.2032, 01.10.2032 and 15.12.2032 maturities, which traded in the range of 10.25 percent to 10.30 percent.

On the external front, the Sri Lankan rupee slightly appreciated against the US dollar, closing at Rs.308.25/US dollar, compared to Rs.308.47/US dollar seen previously. Furthermore, the Sri Lankan rupee has depreciated 5.4 percent year-to-date. Overnight liquidity in the banking system contracted to Rs.78.3 billion, from Rs.102.6 billion recorded on the previous day.