📈 Yields Surge Across Secondary Bond Market Amid Global Risks

The secondary bond market saw a sharp upward trend yesterday, with yields spiking by 20–30 basis points across the curve. This shift was triggered by a deterioration in global risk sentiment following a surge in Brent crude to nearly US$ 117 per barrel and heightened geopolitical tensions in the Middle East. • Secondary Bond Market Performance: Selling pressure was broad-based across all maturities, though buying interest at higher yield levels eventually capped the rise. • 2027 Maturity: Traded between 8.55%–8.60%. • 2029 Maturities: Range expanded significantly to 9.70%–10.10%. • 2034 Maturities: Reached highs of 10.95%–11.12%. • Total Transacted Volume (18 March): Rs. 51.91 Bn. • Money Market & Liquidity: • Net Liquidity Surplus: Recorded at Rs. 283.00 Bn. • Central Bank Intervention: The DOD drained Rs. 100.00 Bn to manage excess liquidity. • Overnight Rates: Call money and Repo weighted averages stood at 7.58% and 7.60% respectively. • Forex Market: The USD/LKR spot exchange rate closed slightly weaker at 311.50/311.65, compared to the previous close of 311.30/311.50. The total traded volume for the day was US$ 38.45 Mn. _Note: Market sentiment remains sensitive to global energy prices and central bank inflation warnings._