Bond yields broadly steady; activity subdued

Friday, 9 October 2026 00:02 - - {{hitsCtrl.values.hits}}

Rupee steady

By wealth Trust Securities

The secondary Bond market yesterday saw yields hold broadly steady and quoted at prevailing levels across most of the yield curve. However, specific selling interest on the 2034 and 2035 tenors saw rates edge up. Activity and transaction volumes were seen at subdued levels with trading at a virtual standstill for much of the day apart from a few sparse transactions.

The 01.11.33 maturity traded at the rate of 11.95%. The 15.06.34 and 15.10.34 maturities traded higher at the rates of 12.08% and 12.10% respectively. The 15.06.35 maturity traded at the rate of 12.15%.

In secondary market Bills, trades were seen on November 2026 and August 2027 at the rates of 9.12% and 9.90% respectively.

In addition, subsequent to the weekly Treasury Bill auction conducted on Wednesday (7), demand extended to the second phase. The second phase was oversubscribed receiving bids amounting to Rs. 16.03 billion as against an offered amount of Rs. 8 billion. Accordingly, the entire offered amount was raised leading to an aggregate subscription of Rs. 88 billion across both phases.

In the money market, the net liquidity surplus was recorded at Rs. 117.21 billion. Of this, Rs. 90.91 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%, while Rs. 0.20 was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.

In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka absorbed Rs. 19 billion through an overnight repo auction at the rate of 8.74% and Rs. 7.50 billion through a 07-day repo auction at the rate of 8.75%. The weighted average yields on overnight call money and repos were recorded at 8.98% and 9.04% respectively.

Forex market

The rupee held steady against the dollar, with the USD/LKR closing at Rs. 330.97/331 yesterday, compared with Rs. 330.95/331.05 on the previous day. Total USD/LKR traded volume for 7 October amounted to $ 80.63 million.

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