📈 Secondary Bond Yields Edge Up Amid Global Tensions

Sri Lanka’s secondary bond market saw yields rise for a second consecutive session as Middle Eastern tensions and high crude oil prices dampened investor sentiment. • Market Sentiment & Activity: Participants adopted a "wait-and-see" approach due to global uncertainty. Despite subdued activity, healthy transaction volumes were recorded via block trades driven by selling pressure. Total secondary market volume for May 4 stood at Rs. 6.79 Bn. • Key Bond Yield Highlights: • 2026 Maturities: 01.08.26 traded at 8.32%. • 2028 Maturities: Yields ranged between 9.75% and 9.85%. • 2030-2031 Maturities: Rates fluctuated between 10.20% and 10.27%. • Long-term (2033-2034): Yields climbed to the 11.00% - 11.29% range. • Treasury Bill Auction (May 6): A total of Rs. 100 Bn is on offer (Rs. 45 Bn for 91-day, Rs. 25 Bn for 182-day, and Rs. 30 Bn for 364-day tenors). This is notably lower than the estimated maturity of Rs. 126 Bn. • Liquidity & Forex: • Market liquidity surplus rose to Rs. 246.30 Bn. • The USD/LKR spot exchange rate closed slightly weaker at Rs. 319.90/320.40, compared to the previous day’s Rs. 319.60/320.00. • Daily forex traded volume reached US$ 55.30 Mn. _Note: Based on secondary market data and CBSL auction schedules._