📉 Sri Lanka Financial Market Brief: Secondary Bond Yields Fall Ahead of Rs. 90 Bn T-Bill Auction

• Market Sentiment: Secondary bond yields declined across medium- to long-tenor maturities, driven by falling global oil prices and US–Iran diplomatic talks that eased near-term inflation concerns. Trading volume remained robust. • Secondary Bond Yields: • 2030 maturities: 01.03.30 traded at 11.45%; 15.10.30 at 11.60%. • 2031 maturities: 01.02.31/15.03.31 at 11.70%–11.72%; 01.12.31 at 11.85%. • 2033 maturities: 15.01.33 at 12.20%; 01.06.33 at 12.35%; 01.11.33 at 12.34%. • Long tenors: 15.10.34 rallied to 12.52%–12.56%; 15.08.36 to 12.82%–12.87%. • Treasury Bill Auction Focus: • Today's Auction: Rs. 90 Bn on offer (Rs. 40 Bn in 91-day, Rs. 30 Bn in 182-day, Rs. 20 Bn in 364-day), below the Rs. 122.89 Bn maturing obligations. • Previous Auction Recap: PDMO raised Rs. 86.48 Bn of Rs. 100 Bn offered (bid-to-cover ratio 2.25x). Rates for 182-day (9.44%) and 364-day (9.95%) held steady, while 91-day edged up 2 bps to 9.34%. • Liquidity & Forex: • Net Liquidity Surplus: Rs. 138.68 Bn; Rs. 126.69 Bn placed in Central Bank's SDFR (8.25%). • Currency: USD/LKR dipped marginally to Rs. 332.65/332.70 (vs. Rs. 332.55/332.65 previous day). Total forex volume traded: US$ 38 Mn (2 Nov).