Currency edges down marginally while sovereign bond yields rise, signaling shifting investor sentiment
The Sri Lankan rupee opened marginally weaker against the US dollar on Friday, while government bond yields saw modest increases, particularly on shorter maturities, reflecting shifting market dynamics.
According to dealers, the rupee opened at 299.98/300.10 in the spot market, slightly softer than Thursday’s close of 299.97/300.05. The movement indicates ongoing market caution amid broader macroeconomic recalibrations.
In the bond market, yields edged upward across several maturities. The bond maturing on 15.12.2026 was quoted at 8.00/15%, slightly higher than the previous day’s 8.01/10%. The 15.10.2028 bond yield rose to 8.85/90% from 8.78/83%, while the 15.12.2029 bond increased to 9.40/45% from 9.36/40%. The bond maturing on 15.03.2031 held steady at the upper band, quoted at 9.90/10.00%, showing a mild firming. The 15.12.2032 bond yield rose to 10.35/45% from 10.33/38%, and the 01.11.2033 bond also saw a slight uptick, quoted at 10.60/70%, compared to 10.60/65% the day before.
The uptick in bond yields across the curve, especially on the shorter end, suggests a more cautious investor outlook possibly in response to global rate trends or local macro developments.
Meanwhile, the stock market was trading down, adding to the day’s subdued sentiment across financial markets.