📊 Sri Lanka Market Update: T-Bill Yields Rise as Secondary Bonds Extend Rally

• Treasury Bill Auction: Yields increased across all tenors for the second consecutive week. The PDMO successfully raised the full Rs. 60.00 Bn offered, receiving total bids amounting to 2.41 times the overall offer. - 91-day yield: 9.20% (+2 bps) - 182-day yield: 9.37% (+1 bp) - 364-day yield: 9.93% (+5 bps) • Secondary Bond Market: Continued its bullish momentum with yields trending lower, driven by a sovereign rating upgrade to 'B-', strong IMF review metrics, and stable Brent crude prices below $100/bbl. Key maturities traded lower across the curve, including 15.02.28 at 10.20% and 15.06.35 at 12.00%. • Money Market: Net liquidity surplus stood at Rs. 148.87 Bn. CBSL mopped up Rs. 22.50 Bn via overnight repo (WAYR 8.74%) and Rs. 38.00 Bn via 7-day term repo (WAYR 8.75%). Weighted average rates for overnight call money and repo were 8.92% and 8.98% respectively. • Foreign Exchange: The USD/LKR spot rate closed slightly lower at Rs. 329.50/329.80 per USD, compared to Rs. 329.40/329.60 on the previous day. Total USD/LKR traded volume stood at US$ 91.00 Mn.