Geopolitical woes weigh down on secondary market

Geopolitical woes weigh down on secondary market

Overall investor sentiment turned mixed yesterday as persistent geopolitical tensions weighed down on the secondary market. Transactions and trading volumes were limited amid constrained investor participation. 

Noteworthy activity was largely clustered around mid-tenors with, 01.08.2030 and 15.10.2030 trading within a narrow range of 11.58% to 11.60%. Further along the curve 01.02.2031 and 01.12.2031 traded at 11.75% and 11.85% respectively. Towards the belly end of the curve 15.06.2034 and 15.10.2034 both traded at 12.45% while 15.03.2035 traded higher at 12.55%. 

On the external front, the LKR marginally depreciated against the USD, standing at LKR 331.91/USD, compared to LKR 331.75/USD seen earlier. Market liquidity in the banking system expanded marginally to LKR 380.98bn compared to LKR 379.13bn recorded previously.

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