Yield curve remains static amidst mixed market activity

By First Capital Reseach

The secondary market yesterday reflected mixed sentiment, characterized by ultra-thin trading volumes and subdued activity. 

Market attention was primarily directed towards 2029 maturities, with trades inthe15.06.2029, 15.09.2029, 15.10.2029, and 15.12.2029 bonds occurring within a yield range of 9.40% to 9.53%.

Additionally, the Sri Lanka Purchasing Managers’ Index (PMI) for Construction, as measured by the total activity index, rose to 60.0 in July 2025, reflecting continued growth in construction activity. Numerous firms reported a consistent rise in available construction projects, indicating sustained positive momentum in the industry.

In the forex market, the LKR, remained broadly unchanged at Rs. 302.1/USD. Meanwhile, overnight liquidity in the banking system expanded to Rs. 144.4bn from the previously seen level of Rs. 138.8bn.