Strong Rally: Foreign Inflows Fuel Secondary Bond Market Yield Decline 📈

• The secondary Bond market kicked off the week on a bullish note, extending the rally and seeing yields decline across the curve, driven by strong buying interest focused on 2026-2030 tenors. • Market sentiment was significantly supported by a major inflow into Sri Lankan rupee Government securities. Foreign holdings rose by Rs. 10.36 Bn last week (ending Oct 30), marking the largest inflow in 32 weeks. • Total foreign holdings have now reached Rs. 141.32 Bn, a two-year high and a 259% surge from September 2024 lows. • Key yields closed lower: 15.12.26 traded at 8.10%; 01.07.30 traded between 9.72%-9.75%; and 15.09.34 traded at 10.70%. • Today's T-Bill auction offers Rs. 57 Bn against an estimated maturity of Rs. 106.40 Bn, marking the second consecutive week of undersupply. • In the Forex market, the Rupee depreciated marginally, closing at Rs. 304.45/304.55 per USD. Net money market liquidity stood at a surplus of Rs. 105.18 Bn.