📈 Secondary Bond Yields Edge Up Amid Geopolitical Tensions

The secondary bond market saw a marginal increase in yields as ongoing Middle East conflicts and rising crude oil prices dampened investor sentiment. Despite initial optimism from diplomatic talks, reports of an attack on a US warship led to a defensive, "wait-and-see" approach by market participants. • Market Yields & Activity Transaction volumes remained healthy, supported by several block trades. 15.12.26 maturity: Traded between 8.55% – 8.65%. 2030 maturities: 01.03.30 at 10.05% – 10.10%; 01.07.30 at 10.20% – 10.25%. Long-term maturities: 01.06.33 at 11.05% and 15.06.35 at 11.26%. Total bond/bill volume (April 30): Rs. 17.24 Bn. • Liquidity & Money Market Net liquidity surplus: Recorded at Rs. 226.55 Bn. Standing Deposit Facility (SDFR): Rs. 176.10 Bn deposited at 7.25%. CBSL absorption: Drained Rs. 50.45 Bn via overnight repo auction at a weighted average rate of 7.71%. • Forex Market The USD/LKR spot rate closed at Rs. 319.60/320.00, relatively stable compared to the previous day’s "spot next" close of Rs. 319.75/320.00. Total USD/LKR traded volume (April 30): US$ 97.99 Mn. _Data based on provisional reports from Wealth Trust Securities and CBSL._