📈 Sri Lanka Bond Yields Continue Slide Amid Robust Demand; Rs. 80 Bn T-Bill Auction in Focus

• Secondary Bond Market Overview: Yields extended lower for a second consecutive session across key tenors, supported by robust activity and sizable block transactions. Demand was heavily concentrated on the belly end (2028-2030 tenors) and 2032 tenors, with 2032 maturities reaching intraday lows of 10.90%–10.95%. • Selected Tenor Yield Rates: • 2028s: Traded between 10.00% and 10.10%. • 2030s: Traded between 10.35% and 10.48%. • 2032s: Traded down to 10.90%–10.95% (from 11.00% opens). • 2033–2036s: Ranged from 11.10% up to 11.75% (15.08.36). • Upcoming & Recap T-Bill Auctions: • Today's Auction: Rs. 80.00 Bn on offer (91-day: Rs. 35 Bn, 182-day: Rs. 25 Bn, 364-day: Rs. 20 Bn) against Rs. 85.97 Bn maturing. • Last Week's Result: Yields fell for a 7th straight week. 91-day dropped 16 bps to 9.06%, 182-day dropped 16 bps to 9.44%, and 364-day eased 2 bps to 9.89%. Total raised was Rs. 132.00 Bn amid 2.86x oversubscription. • Money & Forex Markets: • Liquidity: Net surplus stood at Rs. 138.76 Bn. SDF deposits were Rs. 101.83 Bn (8.25%) and SLF borrowings were Rs. 4.07 Bn (9.25%). Call money averaged 8.85%. • Forex: Spot USD/LKR closed slightly stronger at Rs. 328.00/328.10 (vs. previous Rs. 328.10/328.30). Traded volume reached US$ 52.00 Mn (31 Aug).