📈 Sri Lanka Bond Market Yields Spike Amid Increased Activity

• Secondary Bond market yields saw a sharp increase yesterday, following the Treasury Bill auction where weighted average rates rose across all maturities. The 364-day tenor increased by a notable 16 basis points. • Market activity picked up significantly. Key bond maturities traded: • 15.09.27: 9.05%-9.06% • 15.02.28 & 15.03.28: Highs of 9.15% • 01.07.28: High of 9.20% • 15.10.28: 9.20%-9.23% • Longer tenors (e.g., 15.12.29) climbed to 9.85% from previous 9.65/75 levels, and 01.07.30 traded at a high of 9.95%. • 15.03.31: 10.15%; 01.11.33: 10.60%. • Total secondary market Treasury Bond/Bill volume for Dec 23 was Rs. 28.26 Bn. • An upcoming Treasury Bond auction on Dec 30 (settlement Jan 1, 2026) will offer Rs. 55 Bn across two maturities: • Rs. 30 Bn from 01.07.30 (9.75% coupon) • Rs. 25 Bn from 01.07.37 (10.75% coupon) • Money markets saw net liquidity surplus increase to Rs. 102.48 Bn. Overnight call money and Repo rates stood at 8.00% and 8.05% respectively. • In the Forex market, the USD/LKR spot contract closed depreciating slightly to 309.65/309.75. Total traded volume for Dec 23 was $64.60 Mn.