Yields on downtrend amidst sustained buying momentum

By First Capital Research

The secondary market yield curve budged slightly low on the belly yesterday, as bullish sentiment continued to dominate. 

Amidst moderate volumes, liquid maturities 2026, 2027 and 2028 experienced trades during the day. 
Accordingly, 15.12.2026, 15.01.2027 closed at 10.58% and 10.65%, respectively whilst 01.05.2027 and 15.09.2027 hovered between 11.00%-10.90%. 

On the 2028 tenor, 15.03.2028, 01.05.2028, 01.07.2028 and 15.12.2028 registered transactions in the range of 11.65%-11.35%. 

Meanwhile, 15.05.2030 recorded trades between 12.15%-12.10%. On the external side, LKR appreciated against the USD, closing at Rs. 298.7 after 3 consecutive sessions of decline. Moreover, overnight liquidity closed positively at Rs. 171.1bn whilst CBSL Holdings remained stagnant.