Friday May 01, 2026
Friday May 01, 2026
Monday, 27 April 2026 00:10 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The total outstanding liquidity surplus in the money market was seen increasing drastically during the week as it was recorded at Rs. 199.17 billion against its previous weeks of Rs. 106.32 billion. The weighted average interest rates on Call Money and Repo stood at 7.72% and 7.74%, respectively for the week.
The weekly Treasury Bill auction conducted last Wednesday, saw a slowdown in the upward yield trend. Rates increased only on the shorter tenor maturities, breaking a trend of 5 weeks of across-the-board increases. Accordingly, the yield on the 91-day Bill rose by 12 basis points to 8.27% and the 182-day Bill increased very marginally by one basis points to 8.23%. However, the 364-day Bill saw rates remain unchanged at 8.52%.
The auction was fully subscribed and raised the entire offered amount of Rs. 110 billion at the first phase in competitive bidding. Demand extended to the second phase which raised the Rs. 11 billion, being the maximum offered, out a total market subscription of a staggering Rs. 25.44 billion. Accordingly, the aggregate accepted amount of the issuance was Rs. 121 billion.
Meanwhile, the foreign holdings of rupee-denominated Government securities recorded a net inflow for the second consecutive week, amounting to a healthy Rs 1.28 billion and as a result, total foreign holdings increased to R. 144.20 billion during the week ended 23 April.
In the meantime, the secondary Bond market saw yields holding broadly steady throughout last week, extending the ongoing consolidation phase amid mixed geopolitical signals.
External conditions remained firmly in focus, with ongoing Middle Eastern geopolitical tensions and elevated crude oil prices continuing to anchor market sentiment. However, mid-week, the Treasury bill auction delivered a positive development, as the recently observed upward momentum in rates moderated notably, lifting overall sentiment.
Despite market activity remained subdued, transaction volumes were supported by intermittent block trades. Overall, the market maintained a sideways and range-bound trading pattern closing the week broadly steady compared to the previous week.
In terms of the secondary Bond market trade summary:
During the week, the 01.08.26 maturity traded within intraweek highs and lows of 8.45%–8.40%, while the 15.12.26 maturity traded within intraweek highs and lows of 8.70%–8.60%.
Moving into the 2027 tenors, the 01.05.27 maturity traded within intraweek highs and lows of 8.89%–8.83%, while the 15.06.27 and 15.09.27 maturities traded at 9.05% and 9.00% respectively.
Further along the curve, the 15.03.28 maturity traded at 9.50%, while the 01.07.28 maturity traded within intraweek highs and lows of 9.67%–9.65%. The 15.12.28 maturity traded within intraweek highs and lows of 9.90%–9.85%.
On the mid to long end, the 15.06.29 maturity traded within intraweek highs and lows of 9.97%–9.92%, while the 15.09.29 maturity traded within intraweek highs and lows of 9.95%–9.93%. The 15.10.29 maturity traded within intraweek highs and lows of 10.02%–9.95%, while the 15.12.29 maturity traded at 10.00%.
Moving further, the 01.03.30 maturity traded within intraweek highs and lows of 10.07%–10.04%, while the 01.07.30 maturity traded at 10.16%. The 15.12.32 maturity traded at the rate of 10.82%.
Further out the curve, the 01.06.33 maturity traded at the rate of 11.00%-10.99% and the 01.11.33 maturity traded at 11.00%.
At the long end, the 15.06.34 maturity traded within intraweek highs and lows of 11.19%–11.13% and the 15.06.35 maturity at the rate of 11.20%.
Forex market
In the forex market, the USD/LKR rate on spot next contracts was seen closing the week depreciating to Rs. 318.40/318.70 as against the previous week’s spot closing level of Rs. 316.55/316.70. This was subsequent to trading at a high of Rs. 316.40 and a low of Rs. 317.35.
The daily USD/LKR average traded volume for the first four trading days of the week stood at US $ 64.88 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
