📈 Secondary Bond Yields Rise Amid Global Oil Spikes & Inflation Fears

The Sri Lankan bond market started the week on a bearish note as selling pressure pushed yields higher. Market sentiment is currently weighed down by external pressures, specifically rising global oil prices (Brent crude exceeding $ 115/barrel) and heightened Middle East tensions. • Bond Market Performance: Yields edged up across various maturities due to "imported inflation" concerns. 01.05.28 maturity: Traded at 9.65% 15.09.29 maturity: Traded at 9.95% 01.03.30 maturity: Range of 9.99% - 10.00% 2033/2034 maturities: Hovering between 11.00% - 11.10% • Treasury Bill Auction: A total of Rs. 90 Bn is on offer today (Rs. 40 Bn for 91-day, Rs. 30 Bn for 182-day, and Rs. 20 Bn for 364-day bills). This follows last week's auction where weighted average yields rose across all tenors for the first time in 10 weeks. • Currency & Liquidity: Forex: The LKR depreciated slightly against the US Dollar, closing at Rs. 315.10/316.00 compared to the previous Rs. 314.70/315.00. Liquidity: A net surplus of Rs. 268.86 Bn was recorded. The Central Bank drained Rs. 120 Bn via overnight Repo at 7.60%. • Market Activity: Secondary market transacted volume for bonds/bills stood at Rs. 13.64 Bn, while USD/LKR traded volume reached $ 87.10 Mn. Investors remain cautious, awaiting clearer global economic direction.