📈 Foreign Holdings in Rupee Treasuries Resume Upward Momentum

• Treasury Holdings & Market Liquidity: • Foreign holdings in rupee Treasuries grew by 1.3% WoW (+Rs. 2.75 Bn) to reach Rs. 213.40 Bn for the week ending Sept 10. • Money market liquidity hit a 26-week high of Rs. 366.11 Bn (up from Rs. 355.3 Bn). • Call Money and Repo weighted average rates stood at 8.87% and 8.95%, respectively. • Government Securities Auctions: • Treasury Bills: Fully raised Rs. 80 Bn (bids 1.87x offered). 182-day yield fell 3 bps to 9.24%, 364-day fell 4 bps to 9.77% (9th consecutive weekly decline for long tenors), while 91-day rose 7 bps to 9.03%. • Treasury Bonds: Fully raised Rs. 150 Bn (bids 2.58x accepted). Weighted averages: Aug 2030 (10.83%), Oct 2034 (11.96%), and Jul 2037 (12.08%). • Secondary Market Dynamics: • Secondary bond yields faced upward pressure due to Middle East tensions, rising global oil prices, and higher global bond yields. • Strong liquidity, foreign demand, and domestic macroeconomic fundamentals contained yield increases via periodic buying interest. • Foreign Exchange Market: • The USD/LKR rate depreciated marginally to close at Rs. 328.60/328.70 (vs. Rs. 328.22/328.30 prior week), trading within Rs. 328.15 to Rs. 329.05 intraweek. • Average daily USD/LKR volume stood at US$ 100.81 Mn over the first 4 trading days.