Sri Lanka Bond Yields Consolidate Amid Geopolitical Uncertainty 📈

The secondary bond market yields held steady for a second session as investors adopted a defensive "wait-and-see" stance. Market sentiment remains cautious due to Middle Eastern geopolitical tensions and elevated crude oil prices. • Market Performance & Yields • Secondary market activity was muted with a sideways bias. • 01.08.26 maturity: Traded at 8.40%. • 15.09.27 maturity: Traded at 9.00%. • 2029 tenors: Rates dropped due to concentrated demand, with 15.10.29 trading at 10.00%-9.95%. • 01.03.30 maturity: Traded at 10.07%. • Treasury Bill Auction (22nd April) • Total of Rs. 110 Bn on offer today across three tenors: • 91-day: Rs. 45 Bn • 182-day: Rs. 35 Bn • 364-day: Rs. 30 Bn • Previous auction (last week) saw yields rise for the fourth consecutive week, with the 91-day yield increasing 20 bps to 8.15%. • Liquidity & Forex • Net liquidity surplus: Rs. 123.32 Bn. • USD/LKR: The spot rate closed slightly lower at Rs. 316.50/316.75 (vs Rs. 316.40 previous). • Forex volume: US$ 66.75 Mn (as of 20 April). • Key Rates • Overnight Call Money: 7.68% • Repo Rate: 7.70% • Standing Deposit Facility (SDFR): 7.25%