📈 Secondary Bond Market Yields Rise Amid Global Tensions

The Sri Lankan secondary bond market started the week with increasing yields, driven by defensive investor sentiment due to rising Middle East tensions and surging crude oil prices (Brent crude exceeding US$ 110/bbl). • Bond Market Activity: While overall activity was subdued due to global uncertainty, transaction volumes remained healthy, supported by several block trades. • Key Maturity Yields: • 15.12.27 traded at 9.20% • 15.10.29 traded at 10.00% • 01.07.30 traded up to 10.20%–10.25% • 01.06.33 traded at 11.05% • 15.06.34 traded at 11.25% • 15.08.36 traded between 11.35%–11.40% • Money Market Liquidity: The net liquidity surplus stood at Rs. 183.53 Bn. A total of Rs. 151.18 Bn was deposited at the Central Bank’s SDFR (7.25%), while Rs. 42.65 Bn was withdrawn from the SLFR. Additionally, the Central Bank drained Rs. 75.00 Bn via an overnight repo auction at a weighted average rate of 7.73%. • Forex Market: The USD/LKR spot contracts traded within an intraday range of 326.50 to 327.50. Total traded volume for May 15 stood at US$ 86.50 Mn.