📈 Foreign Holdings in Rupee Treasuries Hit 8-Year High as Rupee Strengthens

• Treasury Holdings: Net foreign inflows reached Rs. 8.30 Bn for the week ending Aug 20, marking 11 consecutive weeks of foreign buying. Total foreign holdings of rupee Treasuries rose to Rs. 202.51 Bn, the highest level since November 2018. • Currency Market: The Sri Lankan Rupee appreciated to below Rs. 330/$ for the first time in over 12 weeks, closing at Rs. 329.40/329.50 against the USD (up from Rs. 332.80/332.90 the previous week). Average daily USD/LKR traded volume stood at $ 109.51 Mn. • Government Bond Market: Secondary market yields showed a downward bias across most tenors due to sustained buying interest: - Short-to-Medium Tenors: 2028 tenors traded around 10.00%-10.05%, while late 2029 maturities eased down to 10.50%-10.55%. 2030 maturities showed mixed trading within 10.70%-10.90%. - Long-Term Tenors: Stronger rally seen in longer bonds, with 2032 maturities falling to 11.20%-11.25%, 2033 to 11.30%-11.45%, 2036 down to 12.00%, and 2037 declining to 12.00%. • Treasury Bill Auction: Yields dropped for the 6th consecutive week across all tenors: - 91-day: 9.22% (-22 bps) - 182-day: 9.60% (-18 bps) - 364-day: 9.91% (-10 bps) — falling below 10.00% for the first time in 12 weeks. - Total accepted amount reached Rs. 154 Bn across primary and second-phase issuance amid strong market demand. • Money Market: Outstanding system liquidity remained high at Rs. 278.51 Bn. Weighted average Call Money and Repo rates settled at 8.81% and 8.86%, respectively.