📉 T-Bill Yields Continue Downward Trend on Longer Tenors; Rs. 80 Bn Auction Fully Subscribed

• Auction Performance: The Public Debt Management Office (PDMO) successfully raised the full Rs. 80 Bn offered, supported by total bids reaching 1.87x the overall offer. Shortfalls in the 91-day tenor were offset by higher acceptances in longer tenors. Phase II subscription is open for 91-day and 182-day maturities. • Yield Movements: Longer tenors extended their decline for a 9th consecutive week, while short-term yields rose slightly: • 91-day: Up 7 bps to 9.03% • 182-day: Down 3 bps to 9.24% • 364-day: Down 4 bps to 9.77% • Secondary Bond Market: Yields initially spiked before renewed buying interest drove two-way quotes lower across various maturities, including 2028s (10.10%-10.20%), 2030s (10.70%), and 2031s (10.80%-11.025%). • Money Market & Liquidity: Net liquidity surplus stood at Rs. 158.14 Bn. CBSL mopped up Rs. 56.50 Bn via overnight repo (WAYR 8.74%) and Rs. 45 Bn via 7-day term repo (WAYR 8.73%). Call money and repo averages settled at 8.87% and 8.94%. • Forex Market: The Sri Lankan Rupee (LKR) appreciated marginally against the US Dollar, closing at Rs. 328.50/328.70 per USD compared to Rs. 328.70/329.00 previously. Total USD/LKR traded volume reached US$ 96.25 Mn.