Tuesday Aug 04, 2026
Tuesday Aug 04, 2026
Tuesday, 4 August 2026 01:47 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market began the new trading week on a positive note, extending last week’s rally as yields initially declined following a sharp retreat in global oil prices. Brent crude fell by around 5% to below $ 84 per barrel after US President Donald Trump called off a planned military strike on Iran and announced fresh negotiations with Tehran, easing geopolitical risk and inflation concerns.
However, the early rally proved short-lived as selling interest on selected maturities prompted a partial reversal. By the close, the market was mixed, with yields on selected maturities finishing higher while others held steady or extended modest gains.
The 15.10.28 maturity traded at the rate of 10.50%. The 2030 tenors traded lower during the early session, with the 01.08.30 and 15.10.30 maturities trading at the rates of 11.30% and 11.35% respectively. The 01.02.31, 15.10.34 and 01.07.37 maturities expressed a V-shaped trading pattern; trading up from lows to highs of 11.45%-11.60%, 12.10%-12.28% and 12.75%-12.82%.
In the money market, the net liquidity surplus stood at Rs. 159.31 billion yesterday. Of this, Rs. 99.31 billion was absorbed via the Central Bank’s Standing Deposit Facility (SDF) at 8.25%, while a further Rs. 60 billion was mopped up through an overnight repo auction conducted by the Domestic Operations Department (DOD) at a weighted average rate of 8.69%.
The weighted average rates on overnight call money and Repos were recorded at 9% and 9.04% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at the day at Rs. 335.75/335.80, broadly steady against its previous day’s close of Rs. 335.65/336.80. The total USD/LKR traded volume for 31 July was $ 125.85 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
