📈 Secondary Bond Market Stabilizes Amid Global Volatility

The secondary Government Bond market closed the week broadly steady despite a volatile start triggered by fluctuating global oil prices and Middle Eastern tensions. • Market Sentiment & Yields Yields spiked early in the week as Brent crude approached US$ 120/barrel but retraced as oil prices corrected. Buying interest from banks and institutional investors helped anchor rates. • 2027 Maturities: 01.05.27 traded at 8.40%; 15.09.27 eased to 8.55% after hitting 8.80%. • 2028-2029 Tenors: 15.02.28 eased to 9.10%; 15.09.29 fell to 9.50% from a 9.65% high. • Long End: 15.06.35 maturity dipped to 10.80% from an intraweek high of 11.00%. • Auctions & Liquidity • Treasury Bills: Weighted averages dipped slightly for 91-day (7.61%) and 182-day (7.91%) bills; 364-day held at 8.23%. • Treasury Bonds: Auction on March 12 raised Rs. 87.02 Bn (66.94% of offer) with rates in-line with the secondary market. • Liquidity: System surplus remains high at Rs. 406.78 Bn. • External Sector & Forex • Foreign Holdings: Recorded a net outflow of Rs. 4.50 Bn, bringing total holdings to Rs. 158.67 Bn. • Currency: The USD/LKR spot rate depreciated slightly to close at Rs. 311.15/311.25, compared to the previous week's Rs. 310.80/311.20. _Note: Based on provisional market data for the week ending March 13, 2026._