Bond market remains sluggish

By First Capital Research

The secondary market yield curve remained broadly unchanged as investors adopted a cautious stance, awaiting clarity on the direction of interest rates ahead of the Bills and Bond auction scheduled for March 2024. 
Amongst the traded maturities, interest was observed on the liquid tenors notably, 01.07.28 which traded at 12.25 percent whilst limited interest was also enticed on 2029 and 2031 tenors which traded at 12.37 percent and 12.55 percent respectively. 

Meanwhile, on the external side, LKR further appreciated against the USD and closed at Rs. 310.2. Moreover, overnight liquidity for the day closed at Rs. -9.0 billion while CBSL holdings remained steady at Rs. 2,715.6 billion.