*First Capital Research | Daily FI & UT Watch | 17 Jun 2025*
*“War clouds continue but yield curve shows no shift”*
Increasing concerns over looming global uncertainty have left secondary market participants cautious, with investors adopting a wait-and-see approach. As a result, the yield curve held its breath, witnessing low volumes and minimal market activity. However, amongst the traded maturities 01.05.2028, 01.07.2028, 15.10.2028, 15.12.2028, 15.09.2029 and 15.12.2032 changed hands at the rates of 8.88%, 8.90%, 8.92%, 8.95%, 9.48% and 10.32% respectively. In the forex market, the LKR depreciated against the greenback, closing at LKR 300.0/USD, compared to the previously seen rate of 299.4/USD. Meanwhile, overnight liquidity in the banking system contracted to LKR 122.9Bn from LKR 131.9Bn in the previous session. On a positive note, recently released data from the Censu#s and Statistics Department shows that GDP grew by 4.8%YoY in 1Q2025.
*-First Capital Research-*