📈 Bond Yields Consolidate Ahead of Rs. 60 Bn Auction

The secondary bond market held broadly steady yesterday as trading volume tapered off with market participants adopting a wait-and-see approach ahead of today's Treasury bond auction. • Bond Market Activity: • 2028 maturities (15.03.28 & 01.05.28) traded at 10.60%–10.63%. • 2029 maturity (15.12.29) traded at 10.95%. • 2030 maturity (01.08.30) fluctuated within 11.20%–11.22%. • 2033 & 2036 maturities traded at 11.60% and 11.98%–12.01% respectively. • Upcoming Rs. 60 Bn Auction: • Total of Rs. 60.00 Bn is offered across two tenors on June 26, with settlement on July 1, 2026. • Rs. 45.00 Bn offered for the 15 Oct 2030 maturity (11% coupon). • Rs. 15.00 Bn offered for the 15 Mar 2035 maturity (11.50% coupon). • _Context_: The previous auction on June 11 failed to raise its Rs. 150.00 Bn target, with all bids for the 2037 maturity rejected. • Money Market Liquidity: • Net liquidity surplus stood at Rs. 65.36 Bn. • Rs. 80.82 Bn was deposited at the Central Bank’s SDFR (8.25%), while Rs. 15.47 Bn was withdrawn via the SLFR (9.25%). • Weighted average overnight call money rate was 9.23%; repo rate was 9.24%. • Forex Market: • The USD/LKR spot rate appreciated slightly, closing at LKR 337.20/337.40 compared to the previous close of LKR 337.00/337.75. • Total traded volume for June 24 stood at US$ 102.95 Mn.