📈 Sri Lanka Secondary Bond Market Yields Increase as Auctions See Mixed Results

• Market Overview & Secondary Yields: Yields drifted higher week-on-week across the curve following selective selling in 2029 and 2034 tenors. Key trades: 2027 maturity at 10.2%, 2029 at 11.0%–11.1%, 2031 at 11.48%–11.75%, and 2034 up to 12.30%. • Treasury Bond Auctions: PDMO raised Rs. 85.69 Bn total (including Rs. 5.00 Bn via Direct Issuance Window). • 2029 tenor: Weighted average yield at 11.00% (fully raised). • 2031 tenor: Weighted average yield at 11.67% (fully raised). • 2036 tenor: Weighted average yield at 12.33% (partially raised). • Treasury Bill Auctions: Raised Rs. 73.33 Bn total against Rs. 80.00 Bn offered. 91-day yield rose +4 bps to 9.30%, while 182-day (9.44%) and 364-day (9.95%) yields remained unchanged. • Foreign Holdings & Liquidity: Foreign investors recorded net inflows for a 3rd consecutive week (+Rs. 364 Mn), raising total foreign holdings in rupee Treasuries to Rs. 202.36 Bn. Money market surplus liquidity remained elevated at Rs. 399.88 Bn. Call money and repo rates held steady at 8.99% and 9.04%. • Currency Movement: The rupee (USD/LKR) dipped marginally to close at Rs. 331.25/331.35 (vs. Rs. 330.85/330.95 prior week), with average daily spot USD trading volume at US$ 45.99 Mn.