Bullish Rs. 205 Bn Bond Auction Drives Yields Down 📈

Sri Lanka’s debt market displayed strong bullish momentum yesterday as the Public Debt Management Office successfully raised Rs. 179.06 Bn (87.35% of the total offer) across three maturities. The results reflect high market liquidity and a general decline in interest rates. • Auction Performance The auction saw robust demand with a bid-to-acceptance ratio of 2.38x. 01.03.30 maturity: Fully raised at 9.72%. 15.06.34 maturity: Fully subscribed at 10.92%. 01.07.37 maturity: Undersubscribed, issued at 11.08%. • Secondary Market Highlights The secondary bond market saw yields drop notably post-auction as traders shifted to the belly-to-long end of the curve. 2029 maturities traded between 9.60% and 9.65%. 2034-2037 tenors saw a bullish decline, trading down to 10.85% and 11.00% respectively. Total transacted volume reached Rs. 60.69 Bn. • Economic Indicators Liquidity: The money market surplus remained high at Rs. 194.26 Bn, keeping overnight rates stable around 7.69%–7.72%. Currency: The Rupee appreciated slightly, with the USD/LKR spot closing at Rs. 309.35/45 compared to the previous Rs. 309.60/67.