📈 Bond Yields Decline as Secondary Market Recovery Extends

• Secondary Bond Market: Yields moved lower across selected tenors on aggressive buying demand, building on the previous day's momentum. Key trades included the 15.12.26 maturity at 9.43%, 01.07.30 at 11.50%, 01.02.31 dropping to 11.72%, and long-tenor 15.09.34 trading down to 12.36%. Overall transaction volumes remained healthy. • Treasury Bill Auction: The weekly T-Bill auction was undersubscribed, raising Rs. 80.61 Bn (80.61% of the offered Rs. 100 Bn). Total bids were 1.86x the offer. Weighted average yields held steady for the 182-day (9.44%) and 364-day (9.95%) tenors, while the 91-day yield edged up 2 bps to 9.32%. • Money Market Liquidity: Net surplus liquidity stood at Rs. 98.13 Bn. The Central Bank absorbed Rs. 32.50 Bn via an overnight repo auction at 8.75% and Rs. 20 Bn through a 30-day repo at 9.25%. Call money and repo rates averaged 9.00% and 9.05%. • Foreign Exchange: The spot USD/LKR rate closed weaker at Rs. 331.90/332.00 compared to Rs. 331.60/331.70 previously, reflecting minor Rupee depreciation. Daily foreign exchange volume reached US$ 103.33 Mn.