📈 T-Bill Yields Dip Marginally Amid Undersubscribed Rs. 130 Bn Auction

The weekly Treasury Bill auction saw a slight decline in short-term yields, though the offer remained undersubscribed during the initial competitive bidding phase. • Auction Results: Only Rs. 96.72 Bn (74.40%) of the Rs. 130 Bn offered was raised. Phase II remains open for the 182-day and 364-day maturities. • Yield Movements: • 91-day: 7.61% (down 2 bps) • 182-day: 7.91% (down 1 bp) • 364-day: 8.23% (unchanged) • Secondary Bond Market: Rates remained broadly steady with healthy transaction volumes. Notable trades included the 15.09.27 maturity at 8.56% and the 01.06.33 at 10.50%. Total transacted volume reached Rs. 7.51 Bn. • Liquidity & Money Market: A significant net liquidity surplus of Rs. 394.53 Bn was recorded. The Central Bank absorbed Rs. 240 Bn via overnight and seven-day repo auctions to manage excess liquidity. • Forex Market: The LKR showed slight appreciation, with the USD/LKR spot closing at 310.85/310.95 compared to the previous day's 310.90/311.00. Daily traded volume stood at US$ 108.90 Mn.