📈 Secondary Bond Yields Steady Amid Robust Fiscal Gains

The secondary bond market consolidated at steady levels as the week commenced, balanced between global geopolitical tensions and strong domestic fiscal performance. • Fiscal Performance (Jan 2026): Revenue and grants surged 35.3% YoY to Rs. 468.75 Bn. The primary surplus expanded by 86.7% YoY to Rs. 222.82 Bn, while the overall budget deficit contracted sharply by 97% YoY to just Rs. 3.81 Bn. • Money Market Liquidity: The net liquidity surplus crossed the Rs. 200 Bn mark for the sixth consecutive day, reaching Rs. 219.28 Bn. The Central Bank (CBSL) drained Rs. 25.00 Bn via overnight Repo at 7.70%, the first such move in 11 days. • Bond Market Activity: Trading remained defensive with limited volume (Rs. 5.66 Bn). - 15.12.28 maturity: 9.85% - 01.07.37 maturity: 11.25% • Forex Market: The LKR saw slight depreciation on spot next contracts, closing at Rs. 319.00/319.25 against the USD, compared to the previous close of Rs. 318.40/318.70. Daily traded volume stood at US$ 36 Mn. _Note: Based on provisional data from Wealth Trust Securities and CBSL._