Rs. 120 Bn Treasury Bill Auction Amid Declining Yields 📈

• Auction Overview: The Central Bank of Sri Lanka (CBSL) has announced a Rs. 120 Bn Treasury Bill auction for today. The offer includes Rs. 30 Bn (91-day), Rs. 55 Bn (182-day), and Rs. 35 Bn (364-day) maturities. Notably, the total offer is below the estimated maturing volume of Rs. 137.17 Bn. • Yield Trends: Previous auction results show a downward trend for the second consecutive week. • 91-day: 7.84% (down 9 bps) • 182-day: 8.26% (down 10 bps) • 364-day: 8.36% (down 11 bps) • Market Liquidity & Demand: The government securities market remains buoyant with strong investor demand. Last week’s auction was oversubscribed, and current net liquidity surplus stands elevated at Rs. 212.54 Bn. Secondary market activity was healthy, specifically focusing on 2029 maturities and short-term bills. • Currency Movement: The Sri Lankan Rupee (LKR) showed slight depreciation against the US Dollar. Spot contracts closed at Rs. 309.55/309.63, compared to the previous close of Rs. 309.25/309.35. Daily trade volume for USD/LKR was recorded at $ 103.75 Mn. • Interest Rates: Overnight call money and Repo rates remained stable at 7.70% and 7.75% respectively, reflecting consistent conditions in the banking and finance sector.