📈 Treasury Bill Auction Sees Strong Demand as Liquidity Surpasses Rs. 250 Bn

The weekly Treasury Bill auction showed robust investor appetite, with the full Rs. 100 Bn offer subscribed at a bid-to-offer ratio of 2.15 times. This follows a period of rising yields, now showing signs of stabilization. • Auction & Interest Rates: Weighted average yields remained largely steady. The 91-day tenor held at 8.20%, and the 364-day at 8.52%. The 182-day tenor recorded a marginal decline of 1 basis point to 8.24%. • Secondary Bond Market: Yields rose for a third session amid geopolitical tensions in the Middle East and oil price volatility. Activity remained healthy due to block trades, with 2028-2030 maturities trading between 9.70% and 10.17%. • Market Liquidity: Net liquidity surplus climbed to Rs. 254.52 Bn. The Central Bank (CBSL) absorbed Rs. 184.52 Bn through the Standing Deposit Facility and drained an additional Rs. 70 Bn via overnight repo auctions. • Currency & Forex: The USD/LKR spot exchange rate closed slightly weaker at Rs. 320.20/321.00 compared to the previous close of Rs. 319.90/320.40. Daily traded volume stood at $ 71.55 Mn.