Monday Aug 24, 2026
Monday Aug 24, 2026
Friday, 21 August 2026 00:06 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday saw continued buying interest pushing yields lower across key segments of the yield curve. Demand was centred on the belly to the long end of the curve, which recorded the strongest gains. However, the rest of the yield curve consolidated at its previous day’s closing levels. Transaction volumes remained healthy, reflecting strong market depth supported by demand from large-volume buyers.
The very short tenor 01.09.28 maturity traded at the rate of 9.20% and 10.15%.
The 2030s saw the 01.03.30, 01.08.30 and 15.10.30 maturities changing hands at levels of 10.75%, 10.85% and 10.90% respectively.
The 01.10.32 and 15.01.33 maturities traded lower at the rates of 11.20% and 11.40%-11.35% respectively. The 01.11.33 maturity traded lower down the range of 11.53%-11.45%. The 15.10.34 traded at the rate of 11.75%. On the long end, the 15.08.36 and 01.07.37 trade lower at the rates of 12.03%-12.00% and 12.11%-12.00% respectively.
Meanwhile, the details of the next upcoming Treasury Bond auctions due to be held next Tuesday, 25 August, were announced. The round of auctions will have a total offered amount of Rs. 50.00 billion across two available maturities.
The auction will comprise of: Rs. 30 billion from a 1 August 2030 maturity bearing a coupon rate of 10%; Rs. 20 billion from a 15 March 2035 maturity bearing a coupon rate of 11.50%; the settlement for which will be held on 1 September 2026.
In the money market, the net liquidity surplus was recorded at Rs. 130.25 billion. Rs. 71.45 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka mopped out Rs. 38.80 billion by way of an overnight repo auction at a weighted average yield of 8.75% as well as Rs. 10 billion and Rs. 20 billion through 28-day and 5-day term repo auctions at the weighted average yields of 9.14% and 8.75% respectively.
The weighted average yields on overnight call money and Repos were recorded at 8.79% and 8.83% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at LKR 330.15/330.25 yesterday, with the Rupee appreciating steadily further from LKR 331.05/331.15 recorded on the previous day.
The total USD/LKR traded volume for 19 August amounted to $ 134.30 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
