📈 Secondary Bond Market Activity & Yields Rise Amid Cautious Sentiment

• Market Sentiment: Yields continued to increase driven by heightened geopolitical risks in the Middle East and elevated crude oil prices, keeping investors cautious. • Bond Yield Movements: Significant upward shifts were recorded on key maturities compared to previous day closings: - 2028 (01.07.28): Traded at a high of 10.55% (vs 10.05/20%). - 2032 (01.10.32 & 15.12.32): Traded at a high of 11.48% (vs 11.00/15%). - 2033 (01.06.33): Traded at a high of 11.60% (vs 11.25/45%). - Other maturities ranging from 2026 to 2037 changed hands between 8.45% and 11.60%. • Money Market & Liquidity: - Net liquidity surplus stood at Rs. 158.93 Bn. - CBSL drained Rs. 100.00 Bn via an overnight repo auction at a weighted average rate of 7.75%. - Central Bank deposits (SDFR at 7.25%) stood at Rs. 128.42 Bn, while SLFR withdrawals (at 8.25%) totaled Rs. 69.49 Bn. - Weighted average rates for overnight Call money and REPO were 7.90% and 7.94% respectively. • Forex Market: The USD/LKR spot contracts traded within a broad range of Rs. 331.00 to Rs. 348.00, with a total traded volume of US$ 24.00 Mn recorded for May 20.