📈 Bond Market Starts Week Strong as Long-End Yields Drop; August CCPI Inflation Rises to 8%

• Market & Yield Curve Movement The secondary bond market opened the week on a positive note with yields lower across selected tenors while the overall curve consolidated. Yields on the long end declined, supported by robust volumes and sizable block trades. Key trading ranges included: - 15.12.28 at 10.10% | 15.12.29 at 10.30% - 01.08.30 (10.50%-10.46%) | 15.10.30 (10.55%-10.50%) - 01.02.31 at 10.60% | 15.01.33 at 11.20% | 01.11.33 (11.30%-11.35%) - 15.10.34 (11.50%-11.45%) | 15.08.36 (11.78%) | 01.07.37 (11.82%) • Macro & Inflation Trends Headline inflation (CCPI) accelerated to 8% YoY in August 2026, up from 7.3% in July, pointing to persistent price pressures impacting national cost-of-living dynamics. • Liquidity & Central Bank Operations - Net liquidity surplus stood at Rs. 132.33 Bn. - Rs. 82.77 Bn deposited at Central Bank's SDFR (8.25%); Rs. 0.44 Bn drawn via SLFR (9.25%). - CBSL Domestic Operations Dept. absorbed Rs. 70 Bn via Repo auctions: Rs. 40 Bn (overnight) and Rs. 10 Bn (2-day) at 8.75% yield, plus Rs. 20 Bn (30-day) at 9.19% yield. - Weighted average yields: overnight call money at 8.85%, repos at 8.91%. • Foreign Exchange & Currency - USD/LKR spot rate closed at Rs. 328.10/328.30 (depreciating slightly from Rs. 327.98/328.04). - USD/LKR spot volume traded (28 Aug): $ 170.25 Mn.