📈 Secondary Bond Market Yields Rise Ahead of Key Monetary Policy Announcement

• Market Sentiment: Yields in the secondary bond market edged higher amid persistent selling pressure and a wait-and-see, risk-off approach by traders prior to the upcoming Monetary Policy Announcement. Transaction volumes were primarily driven by block trades at elevated yield levels. • Bond Yield Movements: • 01.07.28 maturity traded at 10.70% • 15.09.29 maturity traded at 11.15% • 15.10.30 maturity traded at 11.60%–11.65% • 15.03.31 & 01.12.31 traded up to 12.00% • Long-term 15.06.34 maturity reached 12.25% • Upcoming T-Bill Auction: Government securities auction scheduled today offers Rs. 140 Bn (Rs. 60 Bn for 91-day, Rs. 50 Bn for 182-day, and Rs. 30 Bn for 364-day tenors), falling below the estimated Rs. 153.22 Bn maturing debt. • Money Market & Liquidity: Net liquidity surplus was recorded at Rs. 142.36 Bn. Overnight call money and Repo weighted average rates stood at 8.97% and 9.00%, respectively. • Forex Market: The USD/LKR spot rate closed slightly lower at Rs. 336.35/336.50 compared to the previous close of Rs. 336.25/336.30, with a daily trading volume of US$ 74.25 Mn.