Strong Demand Drives Bullish Rs. 50 Bn T-Bond Auction 📈

• Primary Auction Results: The full Rs. 50 Bn offered was raised in competitive bidding with high demand (bid-to-accept ratio: 4.70x). - 01.08.30 Maturity: Weighted average yield at 10.54% (below 10.60%/10.65% pre-auction quotes). - 15.03.35 Maturity: Weighted average yield at 11.70% (vs. 11.65%/11.80% pre-auction market). - Direct Window: Open for an extra 10% across both maturities until Aug 31, 3:00 p.m. • Secondary Bond Market: Staged a rally with aggressive buying, pulling yields down across maturities: - 15.09.29 & 15.10.29: Traded at 10.25% and 10.35%. - 01.08.30 & 15.10.30: Dropped to 10.50% and 10.60% intraday lows. - 01.02.31: Touched a low of 10.60% (down from 10.80% high). - 01.11.33: Traded at 11.35%. - 15.08.36 & 01.07.37: Closed lower at 11.85%-11.95% and 11.95%-11.98%. • Money Market Liquidity: Net liquidity surplus hit Rs. 182.87 Bn. CBSL absorbed liquidity via SDFR (Rs. 117.87 Bn at 8.25%) and overnight/term repo auctions totalling Rs. 125 Bn at weighted averages ranging from 8.74% to 9.18%. Call money and Repo averaged 8.84% and 8.88%. • Forex Market: Sri Lankan Rupee (LKR) appreciated against the US Dollar, closing at Rs. 328.45/328.60 per USD (vs. Rs. 329.00/329.10 previously) with a total volume of US$ 96.85 Mn traded.