📈 Sri Lanka Secondary Bond Market Yields Slide on Bullish Rally

• Market Sentiment & Yield Movement: The secondary bond market extended its rally on aggressive buying interest and elevated trading activity. Yields declined across maturities, with short-term 2028 tenors trading between 10.10%–10.30%, while medium-to-long tenors saw steep drops—2030 maturities down to 10.85%, 2032/2033 tenors down to 11.30%–11.60%, and 2036/2037 tenors sliding to 12.20%–12.25%. • Money Market Liquidity: Net liquidity surplus recorded at Rs. 230.91 Bn. A total of Rs. 103.79 Bn was placed in the SDFR (8.25%), against Rs. 0.48 Bn drawn from SLFR (9.25%). The Central Bank drained Rs. 107.60 Bn via overnight repo (WAR 8.64%) and Rs. 20 Bn via term repo (8.73%). Overnight Call money and Repo weighted average rates stood at 8.78% and 8.82%. • Foreign Exchange (USD/LKR): The Sri Lankan Rupee appreciated, with the USD/LKR spot rate closing at Rs. 333.50/333.65 (up from Rs. 334.20/334.25). Total USD/LKR traded volume reached US$ 72.25 Mn.