📈 Sri Lanka Market Update: Bond Yields Steady Ahead of Rs. 140 Bn T-Bill Auction as Rupee Appreciates

• Secondary Bond Market: Yields saw intraday upward pressure due to profit-taking and rising global oil prices, but renewed buying support brought rates back down to close broadly steady amid moderate trading volumes. • Bond Yield Movements: • 15.10.30 maturity: High of 10.85%, closing lower at 10.75%. • 01.02.31 maturity: High of 11.00%, closing lower at 10.95%. • 15.12.32 maturity: High of 11.40%, closing lower at 11.35%. • Long-end maturities (15.08.36 & 01.07.37) traded down to 12.05% and 12.12%, respectively. • T-Bill Auction Focus: Rs. 140 Bn on offer today across 91-day (Rs. 55 Bn), 182-day (Rs. 45 Bn), and 364-day (Rs. 40 Bn) tenors, exceeding maturing debt of Rs. 123.31 Bn. Follows last week's sharp decline in weighted averages (91-day down 33 bps to 9.44%). • Money Market Liquidity: Net surplus stood at Rs. 142.85 Bn. CBSL absorbed funds via Standing Deposit Facility (Rs. 98.45 Bn at 8.25%), overnight repo (Rs. 44.40 Bn at 8.75%), and term repo (Rs. 20 Bn at 8.99%). Overnight call money and repo weighted average rates held at 8.79% and 8.83%. • Forex Market: The Sri Lankan Rupee steadily appreciated, with USD/LKR spot closing at Rs. 331.90/332.00 (vs Rs. 332.00/332.20 previously). Daily traded volume reached $ 103.30 Mn.