📈 Secondary Bond Market Gains Interest Amid Major Auctions

The secondary bond market saw a slight uptick in rates yesterday as investors adopted a "wait-and-see" approach ahead of significant upcoming auctions and inflation data. Despite cautious sentiment, healthy transaction volumes were recorded via block trades. • Market Activity & Yields: Renewed buying interest emerged at elevated yield levels. Notable trades included 2028 maturities at 9.15%–9.19% and 2029 maturities between 9.39%–9.54%. Longer-term 2034/35 bonds traded in the 10.75%–10.85% range. • Upcoming Treasury Auctions: - T-Bills: Rs. 90 Bn on offer today (below maturing volume of Rs. 107.56 Bn). - T-Bonds: Rs. 140 Bn auction scheduled for Thursday across 2030, 2034, and 2037 maturities. • Liquidity & Money Market: The system remains in a strong net liquidity surplus of Rs. 297.94 Bn. The Central Bank drained Rs. 60 Bn via overnight repo at 7.63%. • Currency (USD/LKR): The Rupee remained stable, with spot contracts closing at Rs. 309.35/40. Total market volume stood at US$ 98.10 Mn (as of Feb 23). Investors remain focused on the February 2026 CCPI inflation data release due later this week to gauge future interest rate trajectories.