📈 T-Bill Rates Hold Steady; Full Rs. 100 Bn Raised as Bond Yields Rise on Geopolitical Tensions

• Treasury Bill Auction: Weighted average yields held stable, breaking a two-week streak of increases. The Rs. 100 Bn offer was fully raised during Phase I, with total bids jumping to 2.30 times the offered amount (up from 1.66 times last week). • 91-day: Reduced by 02 bps to 10.21% (absorbed bulk of volume) • 182-day: Unchanged at 10.30% • 364-day: Edged up 01 bps to 10.21% • Secondary Bond Market: Yields increased on moderate volumes, driven by renewed Middle East tensions, US sanctions on Iranian oil, and rising global oil prices. • 2028 maturities traded at 10.70%. • 2030 maturities traded between 11.30% - 11.37%. • 2033/2034 long-term maturities traded between 11.70% - 11.82%. • Forex Market: The Rupee dipped against the US Dollar. The USD/LKR spot contracts closed lower at LKR 335.75/336.20 compared to the previous day's close of Rs. 334.85/335.00. Total traded volume stood at US$ 81.42 Mn. • Money Market Liquidity: Net liquidity surplus was recorded at Rs. 125.89 Bn. The Central Bank drained Rs. 30 Bn via an overnight repo auction at a weighted average rate of 8.75%. Overnight call money and repo rates averaged 9.15% and 9.16% respectively.