Secondary Bond Market Rally Continues; T-Bill Auction Fully Subscribed 📈

• Secondary Bond market maintained its bullish momentum for a second consecutive session, spurred by news of Sri Lanka outperforming key fiscal metrics against IMF benchmarks for Q1-Q3 2025. • Strong demand led to considerable yield drops across the curve; longer tenor maturities (e.g., 2032) saw yields decline by approximately 10 basis points (bps). Total secondary market turnover was Rs. 15.60 Bn. • The weekly T-Bill auction was fully subscribed (Rs. 57 Bn raised), the first time in four weeks, with a bid/offer ratio of 2.21x. • Weighted Average Yields (WAYRs) held largely steady: 91-day unchanged at 7.52%. Marginal increases on 182-day (+1bp to 7.90%) and 364-day (+2bps to 8.04%). • Money Market: Net liquidity surplus stood at Rs. 154.84 Bn. Overnight call and Repo rates were 7.89% and 7.93%, respectively. • Forex Market: The Rupee depreciated further, with the spot rate closing at Rs. 304.40/304.55 (vs. Rs. 304.10/304.25 previous day). Traded volume was US$ 112.56 Mn.