Sri Lanka has sold Rs.
100 billion in 2029 and 2034 bonds during yesterdays auction as the secondary market saw a decisive shift from the sustained selling sentiment, a trend largely owing to US President Donald Trumps 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 markets mood turned on the back of the USs 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.