📈 Rs. 240 Bn Treasury Bond Auction Fully Subscribed Amid Rate Hikes

• Auction Overview: The Central Bank of Sri Lanka fully raised the total offered Rs. 240.00 Bn during the first phase of competitive bidding. Despite global tensions and crude oil volatility causing a bearish bias, market demand remained strong, with the bids-received-to-accepted ratio reaching 1.84 times. • Yield Performance: Weighted average yield rates increased, moving in line with the recent 100 bps Monetary Policy rate hike. Maturity breakdowns are as follows: • 01.08.30 (Short tenor): 11.86% WAYR • 15.01.33 (Mid tenor): 12.32% WAYR • 15.03.35 (Long tenor): 12.93% WAYR _(Note: A 10% tap window remains open for all three tenors until 3:00 PM today)_ • Secondary Market & Liquidity: The secondary bond market saw robust post-auction transaction volumes as traders aggressively bought into the elevated yields. In the money market, net liquidity surplus stood at Rs. 126.70 Bn, with Rs. 140.98 Bn deposited at the 8.25% SDFR and Rs. 89.27 Bn withdrawn from the 9.25% SLFR. • Forex Market: The USD/LKR spot contracts closed lower at Rs. 328.50/332.00, compared to the previous day's close of Rs. 324.50/326.00. The total traded volume on May 26, 2026, stood at US$ 65.30 Mn.