Secondary Bond Yields Drop Further on Strong Buying & Easing Drivers 📉

• Market Trend: Secondary Bond market yields saw a further decline yesterday, driven by strong buying interest and robust transaction volumes, including block trades. • Key Drivers: Bullish momentum is attributed to fiscal over-performance, US Fed monetary policy easing, increased foreign investment in LKR bonds, and continual undersupply at T-Bill auctions. • Yields Snapshot: • 2026 Maturities traded around 8.05% (01.08.26) and 8.10% (15.12.26). • The 2029 Tenors saw aggressive buying interest, with yields dropping to ranges like 9.48% (15.12.29). • Longer maturities (e.g., 01.07.32) traded lower at 10.51%. • Market Volume: Total secondary market T-Bond/Bill transactions amounted to Rs. 18.80 Bn (for 4 Oct 2025). • Money Markets: Net liquidity surplus stood at Rs. 125.92 Bn. Call money and repo weighted average rates were 7.91% and 7.96% respectively. • Forex: The USD/LKR rate on spot contracts appreciated slightly, closing at Rs. 304.85/304.95. Total traded volume for 4 Nov 2025 was US$ 160.80 Mn.