Dull market persists post auction

By First Capital Research

The secondary market yield curve remained broadly unchanged amidst limited activities and low trading volumes across the market yesterday.

The market experienced limited activity on the mid end of the curve, however trades remained predominantly low as investors adopted a cautious approach in the midst of political uncertainty, in anticipation of the upcoming election results. Notable trades were on the short to mid end of curve. 

On the short end of the curve, 15.09.27 traded at a rate of 13.10%. Meanwhile, on the belly end of the curve 15.02.28 traded at a rate 0f 13.68%. Similarly, 15.03.31 traded was seen trading at a rate of 14.05%. 

On the external front, the LKR depreciated against the USD, closing at 303.92/USD compared to 301.20/USD recorded the previous day. 

Similarly, the LKR also depreciated against the GBP closing at 400.99/GBP, compared to 396.45/GBP recorded the previous day. 

Meanwhile, CBSL holdings of government securities remained unchanged, closing at Rs. 2,515.62bn yesterday. Overnight liquidity in the banking system expanded to Rs. 34.66bn displaying a shift from the negative liquidity of Rs. -31.81bn recorded the previous day.