📈 Bond Yields Steady as Activity Picks Up; Rs. 100 Bn T-Bill Auction in Focus

• Bond Market Overview: Secondary bond market activity saw a marginal pickup, concentrated heavily on the short end of the yield curve. Short-term maturities (2028) traded between 10.50% and 10.65%, 4-year segments (2030) ranged from 11.10% to 11.33%, and the belly end (2032) traded at 11.60%. • Treasury Bill Auction: A Rs. 100 Bn T-Bill auction is scheduled for today, offering Rs. 50 Bn (91-day), Rs. 35 Bn (182-day), and Rs. 15 Bn (364-day). This follows last week's auction where weighted averages rose across all tenors (91-day and 182-day up 9 bps to 10.23% and 10.30%; 364-day up 3 bps to 10.20%), showing a clear front-end bias in government securities re-pricing. • Money Market Liquidity: Net liquidity surplus stood strong at Rs. 134.77 Bn. Market participants deposited Rs. 120.97 Bn at CBSL's 8.25% SDFR, while CBSL drained Rs. 13.80 Bn via an overnight repo auction at 8.75%. Overnight call money and repo weighted average rates closed at 9.17% and 9.19% respectively. • Forex Market: The USD/LKR spot exchange rate held steady, closing at Rs. 334.85/335.00 against the previous day's Rs. 334.90/335.00. The total traded volume stood at US$ 66.70 million.