📈 Sri Lanka Market Brief: Bond Yields Edge Up Ahead of Rs. 80 Bn T-Bill Auction

• Secondary Bond Market: Selling interest pushed yields marginally higher across selected maturities despite increased market activity and transaction volumes. • 15.12.28: 10.55% • 01.08.30: 11.25% • 15.10.30: 11.25%–11.35% • 01.02.31: 11.30%–11.35% • 15.12.32: 11.72% • 15.06.34 & 15.10.34: 12.05% • Treasury Bill Auction: Public Debt Management Office offering Rs. 80.00 Bn today (Rs. 35.00 Bn in 91-day, Rs. 25.00 Bn in 182-day, Rs. 20.00 Bn in 364-day) to match Rs. 80.95 Bn in maturing bills. At the previous auction, weighted average yields rose for the 3rd consecutive week: • 91-day: 9.25% (+5 bps) • 182-day: 9.41% (+4 bps) • 364-day: 9.95% (+2 bps) • Full Rs. 80.00 Bn raised in Phase-1 (bids 2.51x offered) and Rs. 8.00 Bn in Phase-2. • Money Market Liquidity: Net surplus recorded at Rs. 111.98 Bn. Central Bank absorbed Rs. 18.35 Bn via overnight repo at 8.73%. Rs. 93.78 Bn deposited at SDFR (8.25%) and Rs. 0.15 Bn withdrawn at SLFR📈 Sri Lanka Secondary Bond Market Yields Edge Up Ahead of Rs. 80 Bn T-Bill Auction • Secondary Bond Market: Selling interest pushed yields marginally higher despite increased activity and transaction volumes. Traded rates included: - 15.12.28 at 10.55% - 01.08.30 at 11.25% - 15.10.30 at 11.25%–11.35% - 01.02.31 at 11.30%–11.35% - 15.12.32 at 11.72% - 15.06.34 and 15.10.34 at 12.05% • Government Securities & T-Bill Auction: - Scheduled auction on offer: Rs. 80 Bn total (Rs. 35 Bn for 91-day, Rs. 25 Bn for 182-day, Rs. 20 Bn for 364-day), matching estimated maturing debt of Rs. 80.95 Bn. - Previous auction results: Yields rose for the 3rd consecutive week (91-day to 9.25%, 182-day to 9.41%, 364-day to 9.95%). The full Rs. 80 Bn was raised in Phase-1 (bids 2.51x offered amount), with an extra Rs. 8 Bn raised in Phase-2. • Liquidity & Money Market: - Net liquidity surplus stood at Rs. 111.98 Bn. - Rs. 93.78 Bn deposited at SDFR (8.25%); Rs. 0.15 Bn accessed via SLFR (9.25%). - Central Bank absorbed Rs. 18.35 Bn via overnight repo auction at 8.73%. - Call money and repo weighted average rates held at 8.99% and 9.05%. • Foreign Exchange Market: - Rupee (USD/LKR) depreciated slightly to close at Rs. 330.85/330.95 (from Rs. 330.60/330.70 previously). - Daily traded volume recorded at US$ 35.50 Mn.