📈 T-Bill Yields Drop for 8th Straight Week; Rs. 80 Bn Auction Fully Subscribed

• T-Bill Auction Highlights: Yields declined across all tenors at the latest primary auction. The sharpest drop was on the 182-day bill, falling 17 bps to 9.27%, while the 91-day fell 10 bps to 8.96%, and the 364-day eased 8 bps to 9.81%. The PDMO fully raised the offered Rs. 80 Bn, with total bids oversubscribing the auction by 2.54 times. • Secondary Bond Market: Yields saw volatile, two-way movement, closing higher overall due to profit-taking and rising global oil prices driven by Middle East tension. However, a partial recovery was staged following strong T-bill auction demand. Activity remained robust with notable trading across 2028–2036 maturities. • Money Market Liquidity: The net liquidity surplus stood at Rs. 122.05 Bn. CBSL absorbed Rs. 45 Bn via overnight and term repo auctions. Weighted average rates for overnight call money and repo were 8.85% and 8.91%, respectively. • Foreign Exchange: The spot USD/LKR closed slightly weaker at Rs. 328.30/328.70 compared to Rs. 328.00/328.10 on the previous day. Total spot traded volume stood at $ 48.65 Mn on Sept 1.