### Middle East Tensions Jolt Bond Yields and Rupee 📈

Geopolitical instability in the Middle East triggered immediate volatility in Sri Lanka's financial markets at the start of the week, characterized by a sharp spike in yields and currency fluctuations. • Secondary Bond Market: Yields surged during early trade as an immediate reaction to regional tensions. A firm rebound followed as buyers entered at higher yield levels, though closing quotes remained higher than the previous session. Trading volumes remained robust as investors recalibrated positions amid the evolving situation. • Foreign Exchange (LKR): The Sri Lankan Rupee experienced intraday volatility against the US Dollar. The currency moved between a high of Rs. 309.70 and a low of Rs. 310.40. The Rupee ultimately settled at the weaker closing level against the greenback. • Market Sentiment: While the initial sell-off was sharp, the subsequent recovery indicates underlying demand, though geopolitical risks continue to weigh on the financial services sector and investor risk appetite.