Secondary Bond Market Holds Steady Ahead of Rs. 140 Bn T-Bill Auction 📈

Sri Lanka’s secondary bond market entered a consolidation phase, with yields remaining broadly unchanged for the second consecutive session. Market sentiment remains cautious due to elevated crude oil prices and Middle Eastern geopolitical tensions. • Secondary Bond Market Yields: Trades remained subdued as investors adopted a "wait-and-see" approach. 2026 maturity (01.08.26): 8.40% 2028 maturity (01.07.28): 9.71% - 9.75% 2030 maturity (01.07.30): 10.18% 2037 maturity (01.07.37): 11.25% • Treasury Bill Auction (Provisional): A total of Rs. 140.00 Bn is on offer today: Rs. 55 Bn (91-day), Rs. 45 Bn (182-day), and Rs. 40 Bn (364-day). This follows last week's auction where the 91-day yield rose 12 bps to 8.27%, while the 364-day rate held firm at 8.52%. • Liquidity and Money Market: Net liquidity surplus rose for the 7th straight day to Rs. 231.90 Bn. CBSL drained Rs. 40.00 Bn via overnight repo at a weighted average rate of 7.70%. Overnight call money and repo rates held steady at 7.72% and 7.77%. • Forex Market: The USD/LKR spot next contracts closed at Rs. 319.00/320.00, slightly weaker compared to the previous close of Rs. 319.00/319.25. Daily traded volume recorded at US$ 35.35 Mn.