📈 Sri Lanka Secondary Bond Market Yields Consolidate; T-Bill Averages Hold Steady

• Bond Market Dynamics: Yields consolidated after recent rallies, edging lower on selected tenors amid healthy transaction volumes. Notable trades included the 15.12.29 maturity at 10.80%, 01.08.30 at 11.10%–11.05%, 01.12.31 at 11.17%, and 15.08.36 rallying down to 12.20%–12.10%. • Treasury Bill Auction: Weighted average yields remained broadly steady for the 6th straight week. The 182-day tenor yield fell 1 bps (first decline on any tenor in 9 weeks), while 91-day (9.35%) and 364-day (9.95%) yields were unchanged. • Public Debt Operations: The PDMO raised Rs. 79.06 Bn (87.85% of total Rs. 90 Bn offered), up from 73.22% last week. Total bids received were 1.86x the offer. Phase II subscription for 182-day and 364-day tenors remains open until 3:00 p.m. today. • Money Market Liquidity: Net liquidity surplus reached Rs. 154.07 Bn. Rs. 118.07 Bn was deposited at the Central Bank's SDFR (8.25%), while DOD absorbed Rs. 36.00 Bn via repo auction at 8.73%. Overnight call money and repo rates averaged 9.02% and 9.13%. • Foreign Exchange: USD/LKR spot contracts closed at Rs. 332.37/332.40 (vs. Rs. 332.30/332.37 previous day). Total USD/LKR traded volume stood at $151.68 Mn.