Wednesday Apr 29, 2026
Wednesday Apr 29, 2026
Wednesday, 29 April 2026 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market continued see yields holding broadly steady for a second consecutive session, reinforcing the ongoing consolidation phase. Trades were observed around prevailing levels.
External conditions remained the key influence on market sentiment. Middle Eastern geopolitical tensions continued to weigh on investor outlook as crude oil prices remained elevated.
Market activity remained subdued, as Investor behaviour continued to reflect a defensive stance, with most players adopting a wait-and-see approach in the absence of clear directional triggers.
In secondary Bonds market, the 01.08.26 maturity traded at the rate of 8.40%. The 01.07.28 maturity traded at the rate of 9.75%-9.71%. The 01.07.30 maturity traded at the rate of 10.18% and the 15.03.31 maturity at the rate of 10.25%. The 15.06.34 maturity traded at the rate of 11.15% and the 01.07.37 maturity at the rate of 11.25%.
This comes ahead of the Treasury Bill auction due today, which will have a total amount of Rs. 140 billion on offer. This will comprise of Rs. 55 billion offered on the 91-day maturity, Rs. 45 billion on the 182-day maturity and Rs. 40 billion on the 364-day maturity.
For reference, the Treasury Bill auction conducted last Wednesday witnessed a notable moderation in the upward yield trend observed in the recent past. Rates were seen increasing only on the shorter tenor maturities, breaking a trend of 5 weeks of across-the-board increases. Accordingly, the yield on the 91-day Bill rose by 12 basis points to 8.27% and the 182-day Bill increased very marginally by one basis point to 8.23%. However, the 364-day Bill saw rates remain unchanged at 8.52%.
The auction was fully subscribed and raised the entire offered amount of Rs. 110 billion at the first phase in competitive bidding. Demand extended to the second phase which raised the Rs. 11.00 billion, being the maximum offered, out a total market subscription of a staggering Rs. 25.44 billion. Accordingly, the aggregate accepted amount of the issuance was Rs. 121 billion.
The total secondary market Treasury Bond/Bill transacted volume for 27 April was Rs. 200 million.
In the money market, the net liquidity surplus recorded at Rs. 231.90 billion yesterday, increasing for the 7th consecutive day. As an amount of Rs. 192.47 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% while an amount of Rs. 0.57 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%. This prompted the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka to drain out an amount of Rs. 40 billion by way of overnight repo auction at a weighted average rate of 7.70%
The weighted average rates on overnight call money and Repos remained mostly unchanged at 7.72% and 7.77% respectively.
Forex market
The USD/LKR rate on spot next contracts was seen closing the day at Rs. 319.00/320.00 against its previous day’s closing level of Rs. 319.00/319.25.
The total USD/LKR traded volume for 27 April was $ 35.35 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
