Bond market kicks off week on positive note

Tuesday, 22 September 2026 05:58 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary Bond market kicked off the new trading week with yields extending their recovery and remaining on a downward trajectory, carrying forward the positive momentum from the tail end of the previous week.

Trading activity and transaction volumes remained robust, supported by the execution of several sizeable block transactions.

The 15.10.28 and 15.12.28 maturities traded lower at the rates of 10.60% and 10.66% respectively. The 15.09.29 traded at 10.85%. The 2030 and 2031 tenors saw a bulk of the action with the 01.08.30, 15.10.30 and 01.02.31 maturities trading down the ranges of 11.20%-11.15%, 11.25%-11.20% and 11.35%-11.25%. The 01.10.32 and 15.12.32 maturities traded at the rates of 11.55%-11.45% and 11.55% respectively. The 15.01.33, 01.11.33 and 15.06.34 traded at the rates of 11.65%, 11.80%-11.75% and 12.00% respectively.

In the money market, the net liquidity surplus was recorded at Rs. 145.72 billion. Rs. 56.72 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount.

In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka absorbed Rs. 89 billion in liquidity through a series of repo auctions. This comprised Rs. 59 billion via an overnight repo auction and Rs. 30.00 billion through a 7-day term repo auction at rates of 8.75% and 8.74% respectively.

The weighted average yields on overnight call money and repos were recorded at 8.91% and 8.96% respectively.

Forex market

The USD/LKR rate on spot contracts was seen closing at Rs. 330.75/330.90 yesterday, with the Rupee appreciating slightly against the USD compared to Rs. 330.75/331.25 recorded on the previous day.

The total USD/LKR traded volume for 18 September amounted to $ 77.50 million.

(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)