📈 Sri Lanka Bond Market Subdued Ahead of Rs. 100 Bn Auction; Yields Hold Steady

• Secondary Bond Market Overview: Yields remained broadly steady amid subdued trading activity ahead of today's Treasury Bond auctions. • Trading Rates: • 15.12.28 maturity: 10.67% • 15.10.30 maturity: 11.38% • 01.12.31 maturity: 11.60% • 15.10.34 maturity: Recovers to 12.15% (after peaking at 12.20%) • Upcoming Treasury Bond Auction: Rs. 100 Bn total offered across three maturities today: • 15.09.29 (11.00% coupon): Rs. 20 Bn • 01.12.31 (12.00% coupon): Rs. 30 Bn • 15.08.36 (10.85% coupon): Rs. 50 Bn • Settlement Date: 15 October 2026 • Previous Auction Recap: Full offered amount of Rs. 150 Bn raised with strong demand (2.58x bid-to-acceptance ratio). Weighted average yields: 01.08.30 at 10.83%, 15.10.34 at 11.96%, and 01.07.37 at 12.08%. • Money Market Liquidity: • Net liquidity surplus stood at Rs. 168.96 Bn. • Central Bank SDF deposits: Rs. 94.27 Bn (8.25%); SLF withdrawals: Rs. 0.32 Bn (9.25%). • Liquidity absorbed via overnight repo: Rs. 60 Bn (8.72%) and 7-day term repo: Rs. 15 Bn (8.75%). • Call money rate: 8.98% | Repo rate: 9.04%. • Forex Market: Spot USD/LKR closed slightly weaker at Rs. 330.95/331.00 (vs. previous Rs. 330.85/330.95). Total traded volume stood at US$ 71.60 Mn.