Friday May 22, 2026
Friday May 22, 2026
Thursday, 21 May 2026 05:36 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weekly Treasury Bill auction conducted yesterday, was undersubscribed, raising the only 48.03% or Rs. 67.24 billion out of the Rs. 140 billion on offer at the first phase in competitive bidding. The bid to offer ratio stood at 1.66 times.
Rates were seen increasing, reversing the decline observed the previous week. This reflected the bearish bias in the secondary Bond market. Accordingly, the weighted average yield rates on the 91-day tenor increased by five basis points to 8.18% and the 182-day tenor increased by two basis point to 8.25%. However, the 364-day tenor remained unchanged at 8.49%.
The Phase II subscription for ISINs LKA09126H213, LKA18226K206 and LKA36427E219 is now open until 3.00 pm of business day prior to settlement date (i.e., 21.05.2026) at the WAYRs determined for the said ISINs at the auction.
The secondary Bond market remained bearish yesterday, with yields rising for the third consecutive session. Selling pressure continued to drive rates higher, although intermittent buying interest at elevated levels helped prevent a sharper upward move in yields. This was broadly in line with the continued upward pressure seen in global bond markets. Consequently, secondary market two-way quotes closed the day moderately higher.
Market sentiment remained cautious, weighed down by persistent geopolitical tensions in the Middle East and concerns over elevated crude oil prices, which continue to pose risks to the near-term macroeconomic outlook. Despite the defensive tone, market activity stayed healthy, supported by the execution of several block transactions alongside selective buying interest that emerged during the session.
In the secondary Bond market, the 01.08.26 maturity traded at the rate of 8.43%. The 01.07.28 maturity traded up the range of 10.00%-10.15%. The 01.03.30 and 01.07.30 maturities traded at the rate of 10.30% and up the range of 10.40%-10.45% respectively. The 15.03.31 maturity traded at the rate of 10.60%. The 15.06.34 maturity traded at the rate of 11.45%. The 15.08.36 maturity traded at the rate of 11.50%.
In the money market, the net liquidity surplus recorded at Rs. 168.33 billion yesterday. An amount of Rs. 145.85 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% as against an amount of Rs. 52.52 billion withdrawn from the Central Bank’s SLFR (Standing Facility Rate) of 8.25%. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka continued to drain out an amount of Rs. 75 billion by way of overnight repo auction at a weighted average rate of 7.75%
The weighted average rates on overnight call money and Repos were recorded at 7.87% and 7.91%.
Forex market
The USD/LKR rate on spot contracts was seen trading within the range of Rs. 329.25 to Rs. 330.25
The total USD/LKR traded volume for 19 May was $ 41.50 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
