US-Iran Ceasefire Sparks Relief Rally in Secondary Bond Market 📈

A sudden geopolitical shift saw Secondary Bond Market yields decline sharply following the announcement of a US-Iran ceasefire. The news triggered a 15% plunge in Brent crude to approximately $90 per barrel, easing domestic inflationary and exchange rate concerns. • Market Performance & Yields The rally saw yields on key maturities drop mid-session before profit-taking and T-Bill auction results caused a marginal retracement. 15.02.28 maturity: Traded at 9.25% 01.07.30 maturity: Range of 9.95%–9.87% 01.06.33 maturity: Touched a low of 10.85% before closing at 10.98% • Primary Auction & Liquidity Despite the secondary market rally, T-Bill yields rose for the third consecutive week. The Rs. 30 Bn auction was fully subscribed with the 91-day Bill rising 15 bps to 7.95%. A major Rs. 100 Bn T-Bond auction is scheduled for today (09.04.2026). Net Liquidity Surplus: Rs. 237.26 Bn Overnight Call Money: Weighted average at 7.63% • Forex & External Sector The Rupee strengthened slightly, closing at Rs. 315.30/40 against the USD. Positive sentiment is bolstered by imminent IMF Staff Level approval, with Sri Lanka on track to receive US$ 700 Mn by end-May. • Stock Market & Global Trends The bond rally mirrored gains in the local equity market and global financial sectors, driven by the reopening of the Strait of Hormuz and improved global risk appetite.