Rs 100 Bn Bond Auction Sees Cautious Participation Amid Global Tensions 📈

The Central Bank’s latest Treasury bond auction concluded with an undersubscription, raising Rs 82.09 Bn out of a total Rs 100 Bn offered. Investor sentiment remained conservative, largely influenced by external headwinds from US-Iran tensions. • Auction Outcomes: 01.07.30 Maturity: Fully accepted at the 1st phase with a weighted average yield of 10.12%. 15.06.34 Maturity: Undersubscribed; weighted average yield of 11.16%. 01.07.37 Maturity: Undersubscribed; weighted average yield of 11.19%. The bids received to accepted ratio stood at 1.80 times. • Secondary Market & Forex: Secondary bond activity was subdued with the 01.05.27 maturity trading at 8.70% and the 15.12.32 at 10.85%. The USD/LKR spot rate closed slightly weaker at Rs 315.60/315.90, compared to the previous day’s Rs 315.30/315.40. Daily traded volume for forex was US$ 128.20 Mn. • Market Liquidity: The money market maintained a high net liquidity surplus of Rs 239.96 Bn. Overnight call money and Repo rates remained stable at 7.63% and 7.66% respectively. _Note: A 10% issuance window remains open for the 2030 tenor until 3:00 PM today._