Thursday Apr 02, 2026
Thursday Apr 02, 2026
Thursday, 2 April 2026 05:07 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weekly Treasury Bill auction conducted on Tuesday saw weighted average yields increase across the board for the for the second consecutive week. Accordingly, the yield on the 91-day Bill rose by 16 basis points to 7.80%, the 182-day bill increased by 14 basis points to 8.09%, while the 364-day bill saw an uptick of 09 basis points to 8.41%.
The auction was undersubscribed at the first phase in competitive bidding, raising only Rs 32.50 billion, or 36.11% of the total offered amount of Rs. 80 billion. The bid-to-cover ratio stood at 1.20 times.
The second phase subscription across all three tenors is now open until 3.00 pm of business day prior to settlement date (i.e., 02.04.2026) at the WAYRs determined for the said ISINs at the auction.
The secondary Bond market on Tuesday saw yields hold broadly steady and consolidate amidst the prevailing uncertainty stemming from the Middle Eastern conflict, the corresponding impact on global oil prices and other related disruptions.
The softening in Brent Crude Prices on Tuesday, alongside favourable developments such as news that US bond traders were inclined to believe that a growth slowdown could spur FED rate cuts kept a constructive tone acting as counterbalance to the Middle Eastern conflict.
The 01.05.27 maturity traded within the range of 8.85%-8.90%. The 15.10.28 maturity traded at 9.80%. The 15.12.29 maturity traded at the rate of 9.97%. The 01.06.33 maturity traded at the rate of 11.05% and the 15.06.35 maturity traded at the rate of 11.00%.
In terms of inflation data: March CCPI inflation (Base 2021=100) was recorded at +2.20% year-on-year, accelerating from +1.60% in February. The 12-month moving average was recorded at 0.90%. Inflation continues to remain moderate and below the Central Bank’s medium-term target of 5% and even below the lower bound of the target range of 3.00%. This print was also well below expectations of both Bloomberg’s forecast of 3.00%.
The total secondary market Treasury Bond/Bill transacted volume for 30 March was Rs. 6.60 billion.
In money market, the net liquidity surplus in money market was recorded at Rs. 277.95 billion yesterday. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 112.50 billion by way of overnight repo auction at a weighted average rate of 7.60%.
Further an amount of Rs 165.45 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%.
The weighted average rates on overnight call money and Repo yesterday stood at 7.62% and 7.67% respectively.
Forex market
In the forex market, the rupee held broadly steady with spot next USD/LKR closing at Rs.315.50/315.70 against the previous day’s close of Rs.315.60/315.80.
The total USD/LKR traded volume for 30 March was $ 60.44 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
