๐ First Capital Research | Daily FI & UT Watch | 03 Nov 2025
๐ฐ โMarket Opens November on a Bearish Footingโ
The month kicks off with mixed signals across the board. While Octoberโs sluggish tone seems to have lifted slightly, the secondary market still reflects cautious optimism โ yields have dropped 5โ10 bps as investors tilt toward a buying stance. โ๏ธ๐
๐ต Yield Curve Snapshot:
2028 Maturities:
15.03.2028 โ 9.05%
01.05.2028 / 01.07.2028 / 15.09.2028 / 15.10.2028 โ 9.10%โ9.15%
2029 Bonds:
15.06.2029 / 15.09.2029 / 15.10.2029 โ 9.50%โ9.55%
Longer Tenors:
15.03.2031 โ 10.00%
01.06.2033 / 01.11.2033 โ 10.60%
01.07.2037 โ 10.80%
๐ Trading volumes stayed moderate, but interest was seen across the curve, hinting at early repositioning ahead of policy expectations.
๐ FX & Liquidity Update:
USD/LKR: Slight depreciation to 304.49 (vs 304.42 prior).
Banking System Liquidity: Contracted sharply to LKR 105.2Bn (from 155.1Bn).
๐ฌ Analyst Take:
Despite the โbearishโ label, the curveโs softening and steady activity suggest accumulation under the surface. Investors may be preparing for rate adjustments or macro easing ahead โ but with liquidity tightening, near-term volatility remains in play. โ ๏ธ๐ฐ
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