Bullish outcome at Rs. 50 b T-Bond

Wednesday, 26 August 2026 00:00 - - {{hitsCtrl.values.hits}}

Secondary Bond market rallies
Rupee continues to gain steadily

By Wealth Trust Securities

At the round of Treasury Bond auctions conducted yesterday, the entire offered amount of Rs. 50 billion was raised at the first phase of the auction in competitive bidding. The auction recorded a bullish outcome with weighted averages coming below its pre-auction rates.

The bids received to accepted amount ratio stood at 4.70 times, posting a relatively high subscription ratio.

Maturity-wise the results were as follows:

The shorter tenor 01.08.30 maturity was issued at a weighted average yield of 10.54%, below its pre-auction secondary two-way quote of 10.60%/10.65%.
The 15.03.2035 maturity was issued at the weighted average yield of 11.70%, as compared to a pre-auction market two-way of 11.65%/11.80%.

The direct issuance window will be opened for an additional 10% of the offered amount across both maturities at the respective weighted averages until 3:00 p.m. on Monday, the 31 August.

In tandem, the secondary Bond market staged a strong rally yesterday, with aggressive buying interest driving yields sharply lower both ahead and following the auction. The buying momentum gathered pace as the session progressed, pushing yields below Monday’s closing levels across several traded maturities. Market activity remained high.

The 15.09.29 and 15.10.29 maturities traded at the rates of 10.25% and 10.35% respectively. The 01.08.30 and 15.10.30 maturities posted sharp declines trading down from intraday highs to lows of 10.75%-10.50% and 10.75%-10.60% respectively. The 01.02.31 also posted strong gains touching an intraday low of 10.60% as against an opening high of 10.80%. The 01.11.33 traded at the rate of 11.35%. The 15.08.36 and 01.07.37 tenors traded lower down the rates of 11.95%-11.85% and 11.98%-11.95% respectively.

In the money market, the net liquidity surplus was recorded at Rs. 182.87 billion yesterday. An amount of Rs. 117.87 billion was deposited at Central Banks SDFR (Standing Deposit Facility Rate) of 8.25%.

In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs. 40 billion by way of an overnight repo auction at a weighted average rate of 8.74%, along with term repo auctions of 28 days for Rs. 60 billion at a weighted average of 9.18% and 7 days for Rs. 25 billion at a weighted average of 8.75%

The weighted average rates on overnight Call money and Repo were recorded at 8.84% and 8.88% respectively.

Forex market

The USD/LKR rate on spot contracts was seen closing the day appreciating to Rs. 328.45/328.60, from its previous days close of Rs.. 329/329.10.

The total USD/LKR traded volume for 24 August was $ 96.85 million.

(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)