📈 T-Bill Rates Edge Up in Undersubscribed Rs. 140 Bn Auction

The weekly Treasury Bill auction was undersubscribed, reversing the previous week's yield declines amid a bearish secondary bond market. • Auction Overview: Raised only 48.03% (Rs. 67.24 Bn) of the Rs. 140.00 Bn on offer during the first phase. The bid-to-offer ratio stood at 1.66 times. • Yield Rates: - 91-day tenor: Up 5 bps to 8.18% - 182-day tenor: Up 2 bps to 8.25% - 364-day tenor: Unchanged at 8.49% • Secondary Market: Remained bearish for the third consecutive session due to global bond pressures, Middle East geopolitical tensions, and elevated crude oil risks. Notable trades included the 2028 maturity at 10.00%–10.15% and the 2036 maturity at 11.50%. • Money Market: Net liquidity surplus stood at Rs. 168.33 Bn. CBSL's Domestic Operations Department drained Rs. 75.00 Bn via an overnight repo auction at a weighted average rate of 7.75%. Overnight call money and repo rates averaged 7.87% and 7.91% respectively. • Forex Market: The USD/LKR spot contracts traded between Rs. 329.25 and Rs. 330.25, with a total traded volume of US$ 41.50 Mn recorded on May 19.