Thursday Jun 18, 2026
Thursday Jun 18, 2026
Wednesday, 17 June 2026 07:39 - - {{hitsCtrl.values.hits}}
The secondary Bond market yesterday continued to rally and saw rates drop further on selected tenors while the rest of the yield curve consolidated.
The market enthusiasm continued to be buoyed by positive developments on the US-Iran conflict and steps towards a peaceful resolution. Brent Crude oil prices also continued to slide easing inflation and external sector pressures on interest rates acting as a structural driver. Activity and transaction volumes continued to be observed at robust levels.
The 15.12.26 maturity traded at the rate of 10.25%. The 15.02.28 maturity traded down the range of 10.90%-10.85%. The 15.12.29 maturity traded down the range of 11.28%-11.20%. The 15.05.30 and 01.08.30 maturities traded within the ranges of 11.47%-11.40% and 11.53%-11.40%. The 15.12.32 maturity traded within the range of 11.70%-11.65%. The 15.01.33 traded within the range of 11.75% - 11.62%. The 15.06.34 maturity traded within the range of 11.90%-11.80%. The 15.03.35 maturity traded at the rate of 12.00%.
The Treasury Bill auction scheduled for today, will have a total amount of Rs. 70 billion on offer. This will comprise of Rs. 35 billion offered on the 91-day maturity, Rs. 25 billion on the 182-day maturity and Rs. 10 billion on the 364-day maturity. This is broadly in line with the maturity corresponding to the scheduled auction, which is estimated to be approximately Rs. 73 billion.
To recap: at the weekly Treasury Bill auction conducted last Wednesday, yields increased for the fourth consecutive week, albeit at a slower pace. The weighted average yield rate on the 91-day Bill yield rose by 25 bps to 10.09%, the 182-day Bill yield increased by 26 bps to 10.27%. Interestingly the 364-day Bill yield gained 14 bps to 10.16%, with the 6-month yield moving above the 1-year rate, hitting the highest yield levels since September 2024. The auction raised only 51.25% or Rs. 71.7 billion against an offer of Rs. 140 billion, with most accepted bids concentrated in the 3-month tenor.
In money market, the weighted average call money rate was recorded at 9.21% yesterday while weighted average REPO rate stood at 9.24%.
The net liquidity surplus was recorded at Rs. 40.07 billion. An amount of Rs. 93.20 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 53.14 billion withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.
Forex market
In the Forex market, the USD/LKR rate on spot contracts closed at the rate of Rs. 334.75/335.50 as against the previous day’s closing of Rs. 333/334.50.
The total USD/LKR traded volume for 15th June 2026 was $ 73.85 million.
(References: Public Debt Management Office- Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
