Thursday Oct 08, 2026
Thursday Oct 08, 2026
Wednesday, 7 October 2026 04:48 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday witnessed selling interest across selected maturities, pushing yields marginally higher. Market activity and transaction volumes were seen increasing in comparison to the previous day.
In the trade summary, the 15.12.28 maturity traded at the rate of 10.55%. The 01.08.30 traded higher at the rate of 11.25%. The 15.10.30 and 01.02.31 traded up the range of 11.25%-11.35% and 11.30%-11.35% respectively. The 15.12.32 traded at 11.72% while the 15.06.34 and 15.10.34 maturities traded higher at the rate of 12.05% each.
The Treasury Bill auction scheduled for today will have a total of Rs. 80 billion on offer, comprising of Rs. 35 billion in the 91-day maturity, Rs. 25 billion in the 182-day maturity and Rs. 20 billion in the 364-day maturity. The amount on offer is on par with the estimated Rs. 80.95 billion in maturities corresponding to the auction.
For context, at last Wednesday’s weekly Treasury Bill auction, the weighted average yields increased across the board for the third consecutive week.
Accordingly, the 91-day yield rose by 5 basis points to 9.25%, while the 182-day and 364-day yields increased by 4 basis point and 2 basis points to 9.41% and 9.95%, respectively.
The Public Debt Management Office (PDMO) successfully raised the full Rs. 80 billion offered at the phase-1 in competitive bidding. The 91-day and 182-day tenors recorded acceptances above its target allocation, while the 364-day tenor fell short of its target.
Total bids received amounted to 2.51 times the overall offer. The entire Rs. 8 billion additional available under phase-2 of the auction was fully raised.
In the money market, the net liquidity surplus was recorded at Rs. 111.98 billion. Of this, Rs. 93.78 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%, while Rs. 0.15 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.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. 18.35 billion via an overnight repo auction at the rate of 8.73%.
The weighted average yields on overnight call money and repos were recorded at 8.99% and 9.05% respectively.
Forex market
The USD/LKR spot rate or the rupee depreciated marginally to close at Rs. 330.85/330.95 yesterday, compared with Rs. 330.60/330.70 on the previous day. The total USD/LKR traded volume for 5 October amounted to $ 35.50 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
