📈 T-Bill Yields Drop to Extend 5-Week Slide as Market Rally Continues

• T-Bill Auction Highlights - Yields saw their steepest drop yet across all tenors: 91-day fell 33 bps to 9.44%, 182-day shed 21 bps to 9.78%, and 364-day dropped 18 bps to 10.01%. - The Public Debt Department fully raised the offered Rs. 140 Bn. - Demand was strong, with total bids reaching 2.76x the offered amount, reflecting ample market liquidity in government securities. • Secondary Bond & Money Market - Bullish momentum in bonds extended due to high liquidity, low Treasury bond supply in August, and expectations of steady policy rates following CBSL Governor's remarks of no further rate hikes this year. - Yields across key maturities (2027–2036) eased further. - Net liquidity surplus stood elevated at Rs. 249.51 Bn. - Weighted average overnight call money and repo rates fell to 8.79% and 8.84% respectively. • Forex Market - In the forex market, the Sri Lankan rupee appreciated against the US dollar, with USD/LKR closing at Rs. 334.20/334.25 (up from Rs. 334.50/334.60). - Total USD/LKR traded volume stood at US$ 170.60 Mn for 11 August.