Yield curve holds steady as volumes remain moderate

By First Capital Research

The secondary market reflected mixed sentiment, with moderate trading activity resulting in a yield curve that remained unchanged from the previous day.

Among the actively traded maturities, the bonds maturing on 15.12.2026, 15.09.2027 and 15.10.2028 were traded at the rates of 8.30 percent, 8.75 percent and 9.25 percent, respectively. 

Further along the curve, the 15.09.2029 and 15.12.2029 maturities traded within a range of 9.73 percent to 9.75 percent. Additionally, the 15.05.2030, 01.07.2030 and 15.03.2031 bonds saw trades at the rates of 9.77 percent, 9.78 percent and 10.09 percent, respectively. Meanwhile, the 15.12.2032 maturity changed hands at yields ranging between 10.55 percent and 10.56 percent

On the external front, the Sri Lankan rupee depreciated against the US dollar, closing at Rs.302.73/US dollar vs. Rs.302.62/US dollar seen previously. Overnight liquidity in the banking system expanded to Rs.169.2 billion, from Rs.156.8 billion recorded the previous day.