Bond Yields Rise Further Ahead of Rs. 70 Bn T-Bill Auction 📈

• Secondary Bond Market: Yields surged for a second straight session, driven by the short-to-belly end, though partial buying moderated gains. • Key Traded Maturities: • 2029s: 15.09.29 at 10.95%, 15.12.29 at 11.05%-10.95% • 2030s: 01.07.30 at 11.40%, 01.08.30 at 11.45%-11.15%, 15.10.30 at 11.50%-11.40% • 2031s: 01.02.31 at 11.55%-11.35%, 01.12.31 at 11.50% • 2032–2033s: 15.12.32 at 11.90%-11.80%, 15.01.33 at 11.90%, 01.06.33 at 11.85%, 01.11.33 at 11.95%-11.90% • 2034s: 15.06.34 at 12.15%-12.10%, 15.10.34 at 12.02% • Upcoming T-Bill Auction: CBSL offers Rs. 70 Bn against maturing debt of Rs. 73.16 Bn (Rs. 25 Bn for 91-day, Rs. 25 Bn for 182-day, and Rs. 20 Bn for 364-day). • Previous Auction Recap: PDMO raised full Rs. 80 Bn (bids 1.87x offered). 182-day yield fell 3 bps to 9.24% and 364-day fell 4 bps to 9.77% (9th straight week of declines), while 91-day rose 7 bps to 9.03%. • Liquidity & Money Market: Net liquidity surplus reached Rs. 92.55 Bn. CBSL absorbed Rs. 88.59 Bn via SDF (8.25%) and Rs. 5 Bn via Repo (8.70%). SLF withdrawals stood at Rs. 1.04 Bn (9.25%). Call money and repo averages settled at 8.89% and 8.95%. • Forex: The Rupee depreciated, closing at Rs. 330.65/331.10 per USD (vs. Rs. 329.15/329.35 previously). Spot volume recorded $ 44.49 Mn.