Wednesday Sep 09, 2026
Wednesday Sep 09, 2026
Wednesday, 9 September 2026 00:04 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday saw yields extend the upward momentum for a second straight session. The upward pressure was most pronounced across selected tenors, particularly within the 2032–2033 segment, where yields moved higher. Trading activity and transaction volumes remained at moderate levels.
The 15.03.28 and 15.12.28 maturities traded higher at the rates of 10.05% and 10.20% respectively. The 2030 tenors bucked the trend and held steady with the 15.05.30, 01.08.30 and 15.10.30 trading at the rates of 10.65%, 10.75% and 10.80%-10.85% respectively. The 01.02.31 traded at 10.85% and the 01.12.31 traded within the range of 11.05%-11.10%. The 01.10.32 and 15.12.32 traded at the rates of 11.20% and 11.25% respectively. The 01.06.33 and 01.11.33 traded higher at the rates of 11.60% and 11.65%-11.75% respectively. The 15.10.34 traded at the rate of 11.80%.
The Treasury Bill auction scheduled for today, will have a total of Rs. 80 billion on offer, which is well below the estimated maturing amount of Rs. 103.77 billion. This will comprise of Rs. 35 billion on the 91-day maturity, Rs. 25 billion on the 182-day maturity and Rs. 20 billion on the 364-day maturity.
To recap, at last Wednesday’s weekly Treasury Bill auction, weighted average yields extended their decline for an eighth consecutive week, as robust demand continued to drive yields lower across all three tenors.
The sharpest decline was recorded on the 182-day Bill, which fell 17 basis points to 9.27%, while the 91-day yield declined by 10 basis points to 8.96%. Meanwhile, the 364-day yield eased by 8 basis points to 9.81%.
The Public Debt Management Office (PDMO) successfully raised the full Rs. 80 billion offered, with each tenor meeting its respective targeted allocation. Demand remained strong, with total bids received amounting to 2.54 times the offer.
Demand extended into the second phase with the entire Rs. 8 billion being the maximum offered raised against a total market subscription of Rs. 23.83 billion. Accordingly, the aggregate accepted amount stood at Rs. 88 billion.
Meanwhile, the details of the next upcoming Treasury Bond auctions due to be held on Friday, 11 September were announced. The round of auctions will have a total offered amount of Rs. 150 billion across three available maturities.
The auction will be comprised of: Rs. 70 billion from a 1 August 2030 Maturity bearing a coupon rate of 10%; Rs. 50 billion from a 15 October 2034 Maturity bearing a coupon rate of 11.70%; Rs. 30 billion from a 1 July 2037 maturity bearing a coupon rate of 10.75%. The settlement for which will be held on 15 September 2026.
In the money market, the net liquidity surplus stood at Rs. 119.80 billion yesterday. Of this, Rs. 65.17 billion was deposited with the Central Bank through the Standing Deposit Facility (SDF) at 8.25%, while Rs. 0.36 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 a series of repo auctions, mopping up Rs. 40 billion overnight at a weighted average rate of 8.74% and Rs. 15 billion through a 7-day term repo at 8.75%.
The weighted average rates on overnight call money and repos were 8.87% and 8.95% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing depreciating marginally to close the day at Rs. 328.70/329.00, as against its previous day’s close of Rs. 328.25/328.35. The total USD/LKR traded volume on 7 September was $ 118.25 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
