Currency gains and easing bond yields reflect improved investor sentiment amid global developments
Sri Lanka’s rupee opened stronger on Tuesday, trading at 300.40/60 against the US dollar in the spot market, compared to Monday’s closing rate of 301.00/30, according to market dealers. The firmer opening signals renewed confidence in the local currency as market conditions stabilize.
Simultaneously, bond yields showed signs of recovery, indicating a shift in sentiment across the debt market. The yield on the bond maturing on December 15, 2026 eased to 8.05/15 percent from the previous day’s 8.24/35 percent. The bond maturing on July 1, 2028 was quoted at 8.95/9.00 percent, while the yield on the bond maturing on December 15, 2029 fell to 9.58/62 percent, down from 9.75/85 percent. This trend suggests improving investor appetite for government securities, possibly driven by expectations of economic stability or external influence.
Adding to the positive market tone, Sri Lankan stocks were trading higher, buoyed by global sentiment following US President Donald Trump’s announcement of a ceasefire, which he made on social media. The statement sparked optimism among investors, contributing to a more upbeat trading session across local markets.
The strengthening of the rupee and the easing of bond yields collectively underscore a potentially stabilizing phase for Sri Lanka’s financial markets, amid both domestic and international influences.