Banking System Liquidity Rises to LKR 173.8 Billion as Overnight Funds Expand
Sri Lanka's overnight banking liquidity rose to LKR 173.8 billion as short-term rates eased ahead of a major Treasury bond auction.
Sri Lanka's overnight banking liquidity rose to LKR 173.8 billion as short-term rates eased ahead of a major Treasury bond auction.
Sri Lanka's yield curve steepens as 5-6 year bond yields climb over 20 basis points while short-term T-bill rates ease ahead of a.
Government securities yields climb up to 30bps week-on-week in mid-to-long tenors, while foreign holdings of local bonds rise 4.54% and short-term rates ease.
Sri Lanka's central bank kept its policy rate unchanged at 8.75%, saying May's tightening is still transmitting through the economy.
Long-term Sri Lanka government bond yields surged up to 50 basis points week-on-week to July 15, with the 11Y tenor hitting 12.50% as.
Phase 2 results from the June 26 Treasury Bond auction are now confirmed, while short-tenor secondary market yields have risen up to 17.
Excess liquidity in the banking system expanded further on July 6, reaching a level materially above the LKR 61 to 82 billion range.
Week-on-week yield declines of up to 15 basis points were recorded across short and mid-tenor bonds on June 25, while selling pressure emerged.
Strong investor demand saw bids nearly double the offered amount, though weighted average yields rose across all three tenors, signaling that investors priced.
Excess liquidity in the banking system rose by more than LKR 20 billion in a single session, reflecting a significant shift in short-term.