Oil Price Slump Triggers Secondary Bond Market Relief Rally 📈

A sharp decline in global oil prices (Brent crude falling below US$ 95) has sparked a significant relief rally in Sri Lanka’s Secondary Government Bond market, easing inflation fears for the energy sector. • Market Performance: Yields compressed across the curve as institutional buying interest surged. Notable trades include the 01.06.33 maturity dropping 10bps to 10.50% and the 15.02.28 maturity trading at 9.10%. • Macroeconomic Buffer: The rally is supported by strong fundamentals, with Gross Official Reserves hitting a six-year high of US$ 7.28 Bn in February. The current account recorded a surplus of US$ 369.7 Mn in January 2026. • Currency & Liquidity: The Sri Lankan Rupee appreciated to Rs. 310.90/311.00 against the USD. Market liquidity remains ample with a net surplus of Rs. 335.36 Bn. • Upcoming Auction: Focus shifts to today’s Rs. 130 Bn T-Bill auction. The offered amount is lower than the maturing volume of Rs. 149.39 Bn, following a heavily undersubscribed auction last week. _Data based on Wealth Trust Securities and CBSL provisional figures._