Secondary Bond Yields Consolidate Amid Global Tensions 📈

The secondary bond market started the week steady as investors adopted a defensive "wait-and-see" approach, influenced by Middle Eastern tensions and elevated global oil prices. • Bond Market Performance: Yields remained broadly stable across various maturities. Notable trades included: 2027: 01.05.27 maturity at 8.70%. 2029: 15.06.29 and 15.09.29 traded between 9.82% – 9.90%. 2033-2035: Longer-term yields (2033–2035) held between 11.00% – 11.135%. Volume: Secondary market transacted volume (as of April 2) totaled Rs. 11.89 Bn. • Market Liquidity & Central Bank: The financial sector saw a significant net liquidity surplus of Rs. 231.84 Bn. The CBSL drained Rs. 50.00 Bn via overnight repo at 7.58%. Rs. 181.84 Bn was deposited at the 7.25% SDFR. Overnight call money and repo rates averaged 7.63% and 7.66% respectively. • Forex & External Factors: The USD/LKR spot exchange rate remained steady, closing at Rs. 315.40/315.50 compared to the previous close of Rs. 315.35/315.40. Traded volume for April 2 was US$ 79.00 Mn. Sentiment continues to be anchored by external drivers, specifically Brent crude price volatility.