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2026-05-27 18:32:50
[Sri Lanka's Long-Term Bond Auction Shows Steep Yield Curve, 11.86% in 2030, Rising to 12.93% in 2035] ⑴ The Sri Lankan government completed three rounds of long-term government bond auctions on Wednesday. The closing yield for bonds maturing on August 1, 2030, was 11.86%, and the yield for bonds maturing on January 15, 2033, was 12.32%. ⑵ The highest yield was for bonds maturing on March 15, 2035, reaching 12.93%. The yields across the three maturities showed a clear steepening trend, with the spread widening to 107 basis points from 2030 to 2035. ⑶ The auction results indicate that investors are demanding a higher risk premium for ultra-long-term bonds, reflecting market concerns about longer-term inflation and fiscal conditions. The steepness of the yield curve also reflects that Sri Lanka will still need to attract long-term funding at a higher cost after debt restructuring.
