Mid-tenures hold strong as buying interest persists

By First Capital Research

The secondary market yield curve saw a slight downtick on the 2027 and 2028 bonds, as the investors continued to display buying interest on mid tenures. 

However, volumes remained at moderate levels during the day. On the short end, 15.12.2026 closed trades at 10.50 percent. On the 2027 bond, 01.05.2027 and 15.12.2027 registered trades at 11.15 percent and 11.35 percent, respectively.

Meanwhile, several maturities of the 2028 bond enticed interest during the day. Accordingly, 15.02.2028 registered transactions at 11.58 percent while 15.03.2028 and 01.05.2028 closed at 11.60 percent. Moreover, 01.07.2028, 15.10.2028 and 15.12.2028 closed at 11.70 percent, 11.75 percent and 11.78 percent, respectively.

Meanwhile, the Central Bank expects to raise Rs.147.5 billion at the weekly bill auction scheduled for November 13, 2024, raising Rs.62.5 billion from the three-month bill while Rs.65.0 billion and Rs.20.0 billion are to be raised from the six-month and one-year bills, respectively. On the external side, the Sri Lankan rupee appreciated against the US dollar for the second consecutive day, closing at Rs.292.69/US dollar. Conversely, the Sri Lankan rupee depreciated against the other currencies including the GBP, EUR, JPY and AUD. Meanwhile, overnight liquidity improved, closing at Rs.173.4 billion, compared to the previous day’s closing of Rs.169.51 billion. However, the Central Bank holdings continued to remain steady at Rs.2,515.62 billion.