📈 Sri Lanka Secondary Bond Market Yields Close Marginally Higher

• Market Overview & Auctions: Secondary government securities yields ticked higher across most tenors during the week ending 30 Oct, supported by strong buying interest. The Treasury Bond auction successfully raised the entire target of Rs. 100 Bn at competitive bidding (plus Rs. 8 Bn via Direct Issuance), while the T-Bill auction raised Rs. 86.48 Bn (86.48% of the Rs. 100 Bn offered). • Yield Movements: • T-Bills: 182-day (9.44%) and 364-day (9.95%) rates stayed steady for the 4th consecutive week, while the 91-day yield edged up by 2 bps to 9.34%. • T-Bonds: 2030 maturities traded at 11.44%–11.63%, 2034 maturities adjusted up to 12.63%, and 2036 tenors closed at 12.85%. • Foreign Holdings & Liquidity: Foreign holdings in rupee Treasuries declined for a 2nd straight week, falling by 4.30% (Rs. 8.61 Bn) to Rs. 190.94 Bn. However, money market surplus liquidity remained elevated at Rs. 392.68 Bn (up from Rs. 384.90 Bn prior week). • Foreign Exchange: The Sri Lankan Rupee (USD/LKR) depreciated slightly to close at Rs. 332.55/332.65 against the USD, with an average daily trading volume of US$ 54.34 Mn.