Stability in Currency, Rising Bond Yields Reflect Market Repricing Amid Cautious Sentiment
The Sri Lanka rupee opened flat in the spot market on Thursday, trading at 300.50/70 per US dollar, nearly unchanged from Wednesday’s close of 300.40/60, according to market dealers. While currency movement remained stable, bond yields in Sri Lanka edged higher across mid to long-term maturities, reflecting growing investor caution and potential reassessments of future inflation or interest rate outlooks.
The government bond maturing on 15 December 2026 was quoted at 8.15/25 percent, slightly up from the previous level of 8.14/20 percent. The 15 September 2027 bond saw quotes at 8.50/60 percent, also up from 8.54/60 percent. Yields on the 15 October 2028 maturity stood at 8.90/9.00 percent, while the 15 December 2029 bond rose to 9.62/67 percent from 9.52/56 percent the day before.
Longer-term instruments also saw yield increases. The bond maturing on 15 March 2031 was quoted at 10.05/20 percent, up from 9.98/10.10 percent, and the 15 December 2032 bond climbed to 10.35/40 percent, compared to its previous quote of 10.31/38 percent.
The upward movement in bond yields Sri Lanka indicates a tightening sentiment in the fixed income market, possibly linked to concerns over fiscal adjustments, inflation trends, or global rate cues.
Meanwhile, the Colombo Stock Exchange was trading lower during the morning session, in line with regional market trends.