📈 Rs. 51 Bn Bond Auction Yields Bullish Results

The Sri Lankan bond market maintained its strong momentum as the Public Debt Management Office successfully raised the full Rs. 51 billion offered at yesterday's auction. High liquidity and declining money market rates drove yields lower across the board. • Auction Performance: Bids received were 4.86 times the accepted amount, signaling robust investor appetite. • Yield Outcomes: - 2030 Maturity (01.03.30): Issued at a weighted average yield of 9.52%. - 2036 Maturity (15.08.36): This brand-new ISIN was issued at 10.73%, coming in significantly lower than market expectations. • Secondary Market: A strong rally saw yields hit fresh lows. Key trades included the 2027 maturities at 8.40%-8.50% and the 2037 maturity which saw a sharp decline of over 10 basis points. • Market Liquidity: The money market net liquidity surplus remained high at Rs. 296.71 billion, with overnight call money rates averaging 7.64%. • Forex & Volumes: The Rupee remained steady with the USD/LKR spot closing at Rs. 309.30/309.37. Daily trading volume for the USD/LKR stood at $ 121.25 million. The auction success reflects increasing confidence in the financial services and sovereign debt segments as borrowing costs continue to trend downward. _Data based on Wealth Trust Securities and provisional market reports._