📉 T-Bill Rates Drop Across the Board; Rs. 120 Bn Fully Raised

Sri Lanka's weekly Treasury bill auction saw yields decline across all tenors for the first time in five weeks, fully securing its targeted capital. However, external geopolitical pressures marginally nudged secondary bond yields upward. • Auction Performance & Yields: The full Rs. 120 billion offered was successfully raised during the first phase. - 91-day tenor: Decreased by 8 basis points to 10.13% - 182-day tenor: Decreased by 3 basis points to 10.27% - 364-day tenor: Decreased by 1 basis point to 10.20% • Secondary Bond Market: Yields edged marginally higher, driven by cautious market sentiment following escalating Middle East geopolitical tensions and rising global oil prices. Notable trades included the 2030 maturities trading between 11.33% and 11.60%, while the long-term 2037 maturity traded at 12.65%. • Money Market Liquidity: The net liquidity surplus stood at Rs. 147.19 billion. The Central Bank of Sri Lanka (CBSL) absorbed excess liquidity by taking Rs. 87.19 billion through its Standing Deposit Facility Rate (SDFR) at 8.25%, alongside draining Rs. 60 billion via overnight and 7-day term repo auctions. Weighted average rates for overnight call money and repos stood at 8.95% and 9.00% respectively. • Forex Market: The USD/LKR spot contract closed unchanged at Rs. 336.30/336.40. The total market volume traded reached US$ 87.35 million.