Wednesday Nov 11, 2026
Wednesday Nov 11, 2026
Wednesday, 11 November 2026 00:12 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday resumed its downward trajectory, with yields declining across the curve as strong buying interest gathered momentum. Activity and transaction volumes remained at robust levels, with demand evident across a broad range of maturities.
The move was supported by a further improvement in global risk sentiment, as renewed diplomatic momentum surrounding the Middle East conflict strengthened expectations of de-escalation. US President Donald Trump indicated that the conflict with Iran was “effectively over” militarily and said further military action appeared increasingly unlikely following discussions with Qatar’s Prime Minister, reinforcing expectations of a negotiated resolution.
This was reflected sharply in energy markets, with Brent crude extending its decline and falling below $ 90 per barrel, its lowest level since late August. The continued retreat in oil prices helped ease near-term inflation concerns and provided a more supportive backdrop for fixed-income markets.
Against this backdrop, sustained buying interest drove yields lower across the curve, extending the recent rally in the secondary bond market. Trading remained active throughout the session, with robust transaction volumes underscoring the strength of underlying demand.
In terms of the trade summary, the 01.08.30 and 15.10.30 maturities traded lower within the ranges of 11.05%-10.95% and 11.07%-11.00%. The 01.02.31 and 01.12.31 maturities traded within the ranges of 11.10%-11.00% and 11.20%-11.10%. The 15.12.32 traded at the rates of 11.55%-11.50%. The 01.06.33 and 01.11.33 maturities traded at the rates of 11.75%-11.70% and 11.80% respectively. The 15.06.34 and the 15.10.34 maturities traded at the rate of 11.92%-11.90% and 12.00%-11.90%. The 15.08.36 maturity traded at the rates of 12.25%-12.20%.
The Treasury Bill auction scheduled for today will have a total of Rs. 90 billion on offer, comprising of Rs. 40 billion on the 91-day maturity, Rs. 30 billion on the 182-day maturity and Rs. 20 billion on the 364-day maturity. The amount on offer is marginally below the estimated Rs. 96.87 billion in maturities corresponding to the auction.
To recap: At the weekly Treasury Bill auction conducted last Wednesday (4), weighted average yields were seen holding steady with the rate on the 182-day and 364-day tenors remaining unchanged at 9.44% and 9.95% respectively for the fifth straight week. However, the 91-day tenor maturity saw its yield edge up by 01 basis points to 9.35%.
The Public Debt Management Office (PDMO) raised only Rs. 65.90 billion or 73.22% in total out of the Rs. 90 billion offered in total. The 91-day tenor recorded acceptance above its respective target allocation, while the 182-day and 364-day recorded acceptances below their respective offered amounts.
Total bids received amounted to 1.73 times the overall offer.
In the money market, the net liquidity surplus stood at Rs. 164.19 billion yesterday. A total of Rs. 118.67 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs 1.48 billion 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 mopped out Rs. 47 billion by way of an overnight repo auction at a weighted average yield of 8.73%.
The weighted average yields on overnight call money and repos were recorded at 9.03% and 9.13% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 332.30/332.37 yesterday, with the rupee appreciating against its previous day’s closing of Rs. 332.53/332.59. The total USD/LKR traded volume for 9 November amounted to $ 63.00 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
