SL Bond Yields See-Saw Amid Mideast De-escalation & Oil Price Drop 📈

The secondary bond market experienced a volatile start to the week, initially trending bearish before recovering late in the session following shifts in global energy markets. • Bond Market Performance: Yields rose early in the day due to geopolitical tensions, but saw a recovery (lower quotes) toward the close. This shift followed a 10% plunge in Brent crude to approximately US$ 100 per barrel after U.S. signals of de-escalation in the Middle East. • Key Yield Ranges: • 2027-2028 Maturities: Traded between 8.57% – 9.70%. • 2029-2030 Maturities: Significant activity seen between 9.85% – 10.22%. • Long-term (2034): Traded higher in the 11.12% – 11.23% range. • Market Liquidity: The total secondary market volume for treasury bonds/bills reached Rs. 23.63 Bn. Money markets recorded a net liquidity surplus of Rs. 240.27 Bn, with the Central Bank draining Rs. 87 Bn via overnight Repo at 7.59%. • Currency Watch: The Sri Lankan Rupee (LKR) depreciated further against the US Dollar, closing at Rs. 313.00/314.00 compared to the previous close of Rs. 311.85/312.00. Total USD/LKR traded volume stood at US$ 62.28 Mn. _Note: Based on provisional market data from Wealth Trust Securities and CBSL._