📈 Bond Market Recovery Continues as Yields Move Lower

The secondary bond market maintained its recovery momentum on Wednesday, driven by strong buying interest and increased market depth. Strategic accumulation by participants led to significant transaction volumes, particularly in long-term maturities. • Market Performance: Yields trended lower across various maturities due to balance-sheet driven demand. Notable trades included: • Short-term: 2026 maturities traded between 8.40% - 8.42%. • Medium-term: 2028 maturities saw yields ranging from 9.10% to 9.35%. • Long-term: 2035 maturity experienced concentrated demand, with yields dropping from 11.25% to 11.17%. • Total Volume: Secondary market transactions for Treasury Bonds/Bills reached Rs. 18.53 Bn on Jan 13. • Money Market Liquidity: Net liquidity surplus rose to Rs. 182.72 Bn. • Standing Deposit Facility (SDFR): Rs. 182.81 Bn at 7.25%. • Call Money & Repo Rates: Weighted averages stood at 7.96% and 7.97% respectively. • Forex Market: The LKR saw a slight depreciation against the USD, closing at Rs. 309.35/309.50 compared to the previous day's Rs. 309.20/309.30. Total traded volume was US$ 78.38 Mn. _Data based on Wealth Trust Securities and Central Bank of Sri Lanka provisional reports._