📈 Money Market Liquidity Surplus Drives Down Short-Term Rates

• Liquidity & Rates: System liquidity surplus rose to Rs. 290.69 Bn (up from Rs. 246.81 Bn), pushing weighted average Call Money and Repo rates down to 8.80% and 8.84%, respectively. • Foreign Inflows & Bond Rally: Net foreign inflows into rupee Treasuries reached Rs. 1.35 Bn for the week (10th consecutive week), raising total holdings to Rs. 194.21 Bn. Secondary bond yields rallied across tenors amid strong demand and limited August bond supply. • T-Bill Auction: Yields fell for a 5th straight week across all tenors: - 91-day: 9.44% (-33 bps) - 182-day: 9.78% (-21 bps) - 364-day: 10.01% (-18 bps) Total bids reached 2.76x the offered amount. The Public Debt Department raised Rs. 140 Bn in the main auction plus Rs. 14 Bn on tap, totaling Rs. 154 Bn accepted. • Forex & Currency: The Sri Lankan rupee appreciated to Rs. 332.80/332.90 against the USD (up from Rs. 335.37/335.42). Average daily USD/LKR volume stood at US$ 121.78 Mn.