📈 T-Bill Yields Rise as Auction Sees Weak Demand

Treasury Bill yields continued an upward trajectory for the second consecutive week, despite inflation remaining well below the Central Bank's target. • Auction Results (Weighted Average Yields): 91-day: 7.80% (+16 bps) 182-day: 8.09% (+14 bps) 364-day: 8.41% (+09 bps) The auction was significantly undersubscribed, raising only Rs. 32.50 Bn (36.11%) of the Rs. 80 Bn offered. • Inflation (CCPI): The March CCPI print recorded +2.20% YoY, up from +1.60% in February. While accelerating, it remains below the Central Bank’s medium-term target of 5.00% and missed the Bloomberg forecast of 3.00%. • Secondary Bond & Forex Markets: Bonds: Yields held steady amid Middle Eastern conflict concerns and global oil price volatility. The 2027 maturity traded between 8.85%–8.90%. Forex: The Sri Lankan Rupee remained stable, with spot next USD/LKR closing at Rs. 315.50/315.70. • Market Liquidity: The money market maintained a net liquidity surplus of Rs. 277.95 Bn, with the Central Bank draining Rs. 112.50 Bn via overnight repo auctions at 7.60%.