Mixed sentiment persists amidst thin trading volumes

By First Capital Research
The secondary market yield curve experienced a mixed sentiment, as both selling activity and buying activity persisted at similar levels. The overall volumes remained thin amidst limited trading volume. Notable trades were amongst the 2026, 2028 and 2031 maturities. On the short end of the curve, 15.12.26 was seen trading between rates of 9.45 percent - 9.50 percent. Meanwhile, on the belly end of the curve, 15.02.28, 01.05.28 and 15.10.28 were seen trading at rates of 10.45 percent, 10.55 percent and 10.60 percent-10.63 percent, respectively. Similarly, the 01.12.31 maturity traded between rates of 11.43 percent-11.46 percent. Meanwhile, on the external front, the Sri Lankan rupee appreciated slightly against the US dollar, closing at Rs.290.40/US dollar, compared to Rs.290.52/US dollar recorded the previous day. Conversely, the Sri Lankan rupee depreciated against the GBP, closing at Rs.370.28/GBP, compared to Rs.369.12/GBP recorded the previous day. Similarly, the Sri Lankan rupee depreciated against the other major currencies, including the EUR, CNY and JPY. The Central Bank holdings of government securities remained unchanged, closing at Rs.2,515.62 billion yesterday. Overnight liquidity in the banking system expanded to Rs.226.87 billion from Rs.221.89 billion recorded the previous day.