Bond market yields open steady to lower

Tuesday, 3 November 2026 03:23 - - {{hitsCtrl.values.hits}}

Rupee steady

By Wealth Trust Securities

The secondary Bond market commenced the fresh trading week broadly steady to lower, with yields dipping on selected tenors.

Rates initially fluctuated, moving higher during early trading before a strong intraday recovery reversed the upward momentum, pushing yields lower on key maturities. Market sentiment was supported by a sharp decline in global oil prices, with Brent crude falling approximately 4.5% towards $ 108 per barrel, as renewed diplomatic efforts between the US and Iran eased immediate concerns over further supply disruptions and tempered near-term inflationary pressures. Market activity remained moderate, although transaction volumes were boosted by the execution of several block transactions.

The 01.05.28 maturity traded at the rate of 10.85%. The 01.03.30 and the 15.10.30 maturities traded at the rates of 11.47% and 11.62% respectively. The 01.02.31 traded at the rate of 11.75% while the 01.12.31 maturity opened at 11.88% before moving up to 11.95% and recovering to 11.90%.

The 15.10.34 traded down the range of 12.63% to 12.58% and the 15.08.36 traded at the rates of 12.90% to 12.88%.

In the money market, the net liquidity surplus stood at Rs. 169.92 billion yesterday. Of this, Rs. 160.04 billion was deposited with the Central Bank through its Standing Deposit Facility (SDF) at 8.25%, while Rs. 2.12 billion was withdrawn through the Standing Lending Facility (SLF) at 9.25%.

Meanwhile, the Domestic Operations Department (DOD) of the Central Bank absorbed further liquidity through an overnight repo auction, mopping up Rs. 12 billion at weighted average rate of 8.75% and a term repo auction for 30 days amounting to Rs. 40 billion at the rate of 9.24%.

The weighted average rates on overnight call money and repos were 9.05% and 9.11% respectively.

Forex market

The USD/LKR rate on spot contracts was seen closing the day steady at Rs. 332.55/332.65, unchanged against its previous day’s close. The total USD/LKR traded volume on 30 October was $ 99.50 million.

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