Investor sentiment experienced a brief pause following the significant buying momentum observed in recent days, suggesting a period of stabilization ahead of the upcoming Treasury bill auction.
In the secondary market, three-month and six-month T-bills were traded at 10.00% and 10.25%, respectively, with limited activity. The T-bill maturing on December 15, 2026, traded at 10.75%. Mid-term maturities such as February 15, 2028, July 15, 2029, and September 15, 2029, were observed at rates of 11.95%, 12.10%, and 12.05%, respectively, while overall market volumes remained low.
The Central Bank has announced a Treasury bill issuance totaling Rs. 142.5 billion through an auction set for October 2, 2024. Of this amount, Rs. 65 billion will be raised from the 91-day maturity, Rs. 67.5 billion from the 182-day maturity, and Rs. 10 billion from the 364-day maturity.
Inflation, as measured by the CCPI, further decelerated to -0.5% in September 2024, down from 0.5% in August 2024, driven by lower food and non-food inflation rates. Food inflation fell to -0.3%, while non-food inflation declined to -0.5%. Core inflation also decreased slightly to 3.3% in September 2024, compared to 3.6% in August 2024.
On the external front, the Sri Lankan rupee continued to appreciate against the US dollar, closing below the Rs. 300 mark at Rs. 299.4. Overnight liquidity recorded at Rs. 88.65 billion, while Central Bank holdings remained steady at Rs. 2,515.6 billion.