📈 Bond Yields Slide as Market Rally Intensifies

Sri Lanka’s secondary bond market maintained a bullish momentum yesterday, with yields continuing their downward trajectory driven by strong institutional demand. • Market Sentiment & Activity The market shifted from early consolidation to a late-day rally. Activity remained robust, fueled by balance-sheet driven demand from major institutions. Total transacted volume for Treasury Bonds/Bills reached Rs. 81.83 Bn (as of Jan 21). • Key Yield Movements Yields saw a notable decline across various maturities: 2028 Maturities: Traded between 9.11% and 9.15%. 2029 Maturities: Ranged from 9.55% to 9.67%. 2030 Maturities: Hovered between 9.70% and 9.72%. Longer Tenure: The 15.06.35 maturity traded between 11.03% and 11.06%. • Liquidity & Money Market The net liquidity surplus decreased slightly to Rs. 157.54 Bn. The Standing Deposit Facility Rate (SDFR) stood at 7.25%, while the Standing Lending Facility Rate (SLFR) remained at 8.25%. Weighted average rates for call money and repo were 7.79% and 7.80% respectively. • Forex Trends The LKR saw a marginal depreciation against the USD, with spot contracts closing at Rs. 309.75/309.85 (vs Rs. 309.72/309.80 previously). Total traded volume stood at US$ 56.05 Mn.