📉 Sri Lankan Bond Yields Extend Downward Rally; Rupee Appreciates

• Market Sentiment & Macro Drivers: Secondary market bond yields declined across the curve amid strong buying interest and robust transaction volumes. Sentiment was boosted by easing Middle East geopolitical tensions, driving Brent crude below US$ 90/bbl and alleviating near-term inflation concerns. • Bond Yield Range: Key maturities saw consistent yield declines across tenors: • 2030 Maturities: Traded down to 10.95%–11.07% • 2031 Maturities: Range of 11.00%–11.20% • 2032–2033 Maturities: Range of 11.50%–11.80% • 2034–2036 Maturities: Range of 11.90%–12.25% • Upcoming T-Bill Auction: Government Securities / Treasury Bills auction today offers Rs. 90 Bn (Rs. 40 Bn in 91-day, Rs. 30 Bn in 182-day, and Rs. 20 Bn in 364-day tenors), slightly below the estimated Rs. 96.87 Bn maturity profile. Last week, PDMO raised Rs. 65.90 Bn (73.22% of offer) with 91-day yield at 9.35%, 182-day at 9.44%, and 364-day at 9.95%. • Liquidity & Forex: • Net money market liquidity surplus stood at Rs. 164.19 Bn; Central Bank mopped up Rs. 47 Bn via overnight repo auction at 8.73%. • Spot USD/LKR rupee exchange rate appreciated to close at Rs. 332.30/332.37 (vs. previous day's Rs. 332.53/332.59). USD/LKR trading volume reached US$ 63.00 Mn on Nov 9.