Local Bond Market Buoyant Amidst US Fed Rate Cut 📈

• Secondary Bond Market sentiment remained strong, with robust buying interest absorbing initial selling, buoyed by the US Federal Reserve cutting its policy rate by 25 basis points (bps) to a range of 3.75%-4.00%. • Foreign Holdings Rebound: Foreign investment in Government Securities reached Rs. 130.96 Bn (a nearly two-year high), reflecting a 233% increase from the low recorded in September 2024. • Bond Yields consolidated at new levels: Key maturities traded included 15.02.28 at 9.07%, 15.10.30 at 9.80%, and 01.11.33 at 10.60%. Total market transacted volume was Rs. 29.35 Bn (Oct 29). • Money Market: The net liquidity surplus was recorded at Rs. 153.72 Bn. An amount of Rs. 154.52 Bn was deposited at the SDFR (7.25%). Weighted average call money and repo rates were 7.89% and 7.92% respectively. • Forex: The USD/LKR rate on spot contracts appreciated slightly, closing at Rs. 304.35/304.45. Total traded volume was $ 108.30 Mn.