📈 Secondary Bond Market Maintains Bullish Momentum

Sri Lanka's secondary bond market continued its positive trend on February 10, with yields edging lower across key maturities. Robust trading volumes reflected strong investor interest, particularly in mid-to-long-term tenors. • Market Sentiment & Yields: Demand was highest for 2029–2037 maturities. Notable trades included the 15.03.28 maturity at 8.98% and the 01.07.37 maturity at 10.95%. The short end of the curve remained consolidated, with the 01.08.26 maturity trading at 8.10%. • Treasury Bill Auction: A Rs. 90.00 Bn auction is scheduled for today (Feb 11), featuring: 91-day: Rs. 20 Bn 182-day: Rs. 50 Bn 364-day: Rs. 20 Bn The total offer is slightly below the maturing volume of Rs. 91.50 Bn. In the previous auction, weighted average rates fell for the third consecutive week, with the 91-day bill reaching 7.80% (-4 bps). • Liquidity & Money Market: Net liquidity surplus remains high at Rs. 282.22 Bn. Overnight call money and repo rates averaged 7.68% and 7.72%, respectively. Secondary market transacted volume stood at Rs. 26.87 Bn (as of Feb 9). • Forex Performance: The LKR remained stable against the US$, with spot contracts closing at Rs. 309.40/45. Daily traded volume was recorded at US$ 118.80 Mn.