📈 Bond Yields Broadly Steady Ahead of Major Auctions & Inflation Data

Sri Lanka’s secondary bond market began the week on a subdued note as investors adopted a wait-and-see approach ahead of key debt auctions and the upcoming July CCPI inflation release. • Market Activity & Yields: Trading volumes were mostly supported by block trades as higher yields drew renewed buying interest. Selected maturity yields: • 2026: 15.12.26 traded at 10.00% • 2029: 15.09.29 traded at 11.23% • 2030: 01.07.30 (11.60%), 01.08.30 (11.62%–11.66%), 15.10.30 (11.64%–11.68%) • 2033: 15.01.33 traded at 12.25% • Upcoming Auctions: • Treasury Bills: Rs. 140 Bn offered today across 91-day (Rs. 60 Bn), 182-day (Rs. 50 Bn), and 364-day (Rs. 30 Bn) tenors—below estimated upcoming maturities of Rs. 164.11 Bn. • Treasury Bonds: Rs. 250 Bn scheduled for Thursday across 2031, 2034, 2036, and 2037 maturities. • Previous T-Bill Recap: Last week raised Rs. 154 Bn in total. Weighted average yields dropped on 91-day (-18 bps to 9.95%, dipping below 10% for the first time in 7 weeks) and 182-day (-3 bps to 10.24%), while 364-day yields held flat at 10.20%. • Liquidity & Forex: • Net Liquidity Surplus: Stood at Rs. 153.80 Bn. Call money and Repo rates averaged 9.00% and 9.03%. • USD/LKR: Spot ended steady at Rs. 336.20/336.30, with daily traded volume at $ 48.05 Mn.