📈 Treasury Bond Auction Raises Rs. 150 Bn; Money Market Liquidity Surges

Sri Lanka’s central bank successfully raised the full Rs. 150 billion offered amount during the first phase of yesterday's Treasury Bond auction. • Auction Performance: Total demand was strong with a bid-to-acceptance ratio of 2.42 times. Weighted average yields across all tenors landed slightly above pre-auction secondary market quotes: • 2030 Maturity (15.10.2030): Issued at 11.57% (vs. secondary market's 11.47%–11.50%). • 2034 New Maturity (15.10.2034): Issued at 12.04% (vs. similar 15.06.2034 rate of 11.80%–11.90%). • 2037 Maturity (01.07.2037): Issued at 12.58% (vs. comparable 15.08.36 rate of 11.80%–12.00%). • Secondary Market: Trading remained exceptionally quiet and at a virtual standstill as market participants maintained a cautious, watchful stance surrounding the auction. • Money Market Liquidity: Net liquidity surplus jumped significantly to Rs. 152.35 billion (up from Rs. 116.72 billion previously). Commercial banks deposited Rs. 131.43 billion at the Central Bank's 8.25% SDFR, while the Domestic Operations Department drained Rs. 21 billion via an overnight repo auction at 8.74%. • Forex & Rupee: The Sri Lankan Rupee dipped marginally against the US Dollar. Spot contracts closed lower at LKR 336.00/336.25 compared to the previous close of LKR 335.70/335.85. Total USD/LKR traded volume stood at US$ 98.65 million. _Note: A direct issuance window is open for an additional 10% of the offered amount until 3:00 PM today (14 July). Data based on Wealth Trust Securities report._