Buying interest on tail end of curve

By First Capital Research
The secondary market enticed thin volumes and limited activities during yesterday’s session. 
Mixed activities were observed on the 2028 maturity, with the 15.03.28, 01.05.28, 01.07.28 and 15.12.28 maturities trading between 10.70 percent and 10.85 percent. 
Meanwhile, buying interest was observed on the tail end of the curve, with the 01.10.32 maturity trading at 11.85 percent. On the external front, the Sri Lankan rupee continued to depreciate for the fifth consecutive session and recorded at Rs.301.89/dollar, whilst the currency recorded a depreciation of 1.7 percent month-on-month. 
Meanwhile, overnight liquidity in the banking system contracted to Rs.170.6 billion from Rs.200.7 billion recorded the previous day, whilst overnight liquidity also fell slightly compared to the April 2024 end of Rs.173.8 billion. The Central Bank holdings of government securities also declined to Rs.2,635.6 billion yesterday, compared to Rs.2,675.6 billion recorded April 2024-end.