📈 Secondary Bond Market Subdued Ahead of High-Stakes Week

The Sri Lankan secondary bond market began the week on a defensive note as investors brace for several major economic indicators and auctions scheduled for late January. • Market Outlook & Key Events: Market participants are awaiting the first Monetary Policy Announcement of 2026 and a Treasury Bill auction on January 28. This is followed by a Treasury Bond auction on January 29 and the January CCPI inflation print on January 30. • Bond Auction Details: A total of Rs. 205 billion will be offered across three maturities: • Rs. 60 billion: 01.03.2030 (9.50% coupon) • Rs. 80 billion: 01.06.2034 (10.75% coupon) • Rs. 65 billion: 01.07.2037 (10.75% coupon) • Secondary Market Yields: Yields edged marginally higher with transactions focused on the following maturities: • 2027: 8.90% • 2028: 9.05% to 9.25% • 2029: 9.65% to 9.67% • 2030: 9.70% to 9.72% • 2035: 10.95% to 10.98% • Liquidity & Currency: • Market Liquidity: Net surplus recorded at Rs. 169.74 billion. • Currency: The Rupee appreciated slightly, with the USD/LKR spot contract closing at Rs. 309.50/309.60 compared to the previous close of Rs. 309.76/309.80. • Forex Volume: US$ 71.95 million (as of Jan 23).