Sri Lanka has sold Rs. 100 billion in 2029 and 2034 bonds during yesterday’s auction as the secondary market saw a decisive shift from the sustained selling sentiment, a trend largely owing to US President Donald Trump’s tariff measures.
Accordingly, a total of Rs. 75 billion has been raised through the December 2029 maturity, with a weighted average yield of 10.64%, while Rs. 25 billion was secured through the September 2034 maturity, which saw a weighted average yield of 11.21%.
The auction was notably fully subscribed, reflecting improved investor confidence.
The market’s mood turned on the back of the US’s announcement of a 90-day suspension of reciprocal tariffs for most countries, including Sri Lanka. Investors, buoyed by this favorable turn of events, pivoted to a buying sentiment.
Globally, a manic bond sell-off eased today after the US President said he would temporarily lower some of the hefty duties.
