Profit-taking persists as yield curve rises slightly

By First Capital Research 

The Secondary market yield curves edged up slightly yesterday as investors opted to maintain a profit-takingstance for the 2nd consecutive day, continuing from the previous day amidst moderate trading volumes.

Trades were concentrated on the short to midend of the curve as the previous day, where 01.05.27 traded at 10.20% and 01.10.27 traded at 10.32%. Towards the belly end of the curve, 15.02.28, 01.05.28, 01.07.28 and 15.12.28 traded at 10.50%, 10.60%, 10.65% and 10.70% respectively whilst 01.12.31 traded at 11.35%. 

Notably, the overnight liquidity saw a slight decline compared to the previous day and stood at Rs. 127.9bn, whilst CBSL holdings of government securities remained steady at Rs. 2,515.6bn for the day.

Furthermore, in the forex market, the LKR continued to appreciate against the USD for the 4th consecutive session, closing at Rs. 290.6 for the day, compared to the last session closed at LKR 290.7. 

Additionally, LKR continued to appreciate against other major currencies such as GBP, EUR, CNY and AUD as well.