T-Bill Rates Decline Across All Tenors Amid Full Subscription 📉

The weekly Treasury Bill auction saw yields retreat for the first time in 10 weeks, reversing a recent upward trend. The monetary sector showed strong demand with the Rs. 80.00 Bn offer fully subscribed at a bid-to-offer ratio of 2.74x. • Auction Results (Weighted Average Yields): • 91-Day: 8.13% (down 7 bps) • 182-Day: 8.23% (down 1 bps) • 364-Day: 8.49% (down 3 bps) • Secondary Bond Market: Yields edged up slightly due to profit-taking following a previous rally. Key trades included the 2026 maturity at 8.15% and the 2030 maturity at 10.05%. Market sentiment remains cautious due to Middle Eastern tensions and oil prices, though optimism persists regarding upcoming US-China diplomatic talks. • Liquidity & Money Market: The system recorded a significant net liquidity surplus of Rs. 255.68 Bn. The Central Bank drained Rs. 65.00 Bn via overnight repo at 7.70%. Overnight call money and repo rates averaged 7.78% and 7.83%, respectively. • Forex Market: The USD/LKR spot exchange rate closed at Rs. 324.00/325.50, slightly weaker than the previous day's close. Total traded volume was recorded at US$ 132.56 Mn. _Note: Based on provisional data from the Central Bank and Wealth Trust Securities._