Tuesday Oct 13, 2026
Tuesday Oct 13, 2026
Monday, 12 October 2026 03:58 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The Surplus liquidity in money markets was seen closing in on the Rs. 400 billion mark, reaching its highest level since mid-March 2026. For the week ending 9 October 2026, liquidity was recorded at Rs. 399.14 billion increasing from its previous week’s figure of Rs. 360.11 billion.
The weighted average rates on Call Money and Repo stood at 8.99% and 9.04% respectively.
The secondary Bond market remained largely range-bound last week, with yields consolidating at prevailing levels amid the absence of strong directional drivers.
While much of the yield curve held broadly steady, intermittent selling interest saw yields edge moderately higher across selected maturities, particularly towards the latter part of the week. The upward movement remained relatively contained, reflecting the lack of broad-based selling pressure and continued two-way interest around prevailing levels.
Overall, the market closed the week with yields moderately higher across selected tenors, while the remainder of the curve remained broadly unchanged. Activity and transaction volumes ranged from subdued to moderate, with trading sporadic for much of the week before improving towards the close of the week.
The 15.10.28 traded up from an intraweek low of 10.51% to a high of 10.65%, while the 15.12.28 similarly moved higher from 10.55% to 10.60%. The 2030 and 2031 tenors also saw yields move higher during the week. The 01.08.30 traded up from an intraweek low of 11.15% to a high of 11.25%, while the 15.10.30 traded up the range of 11.25%-11.40%. The 01.02.31 followed suit, with yields rising from an intraweek low of 11.30% to a high of 11.45%. The 01.11.33 traded at 11.95%. Further along the curve, the 15.06.34 traded up from 12.05% to 12.08%, while the 15.10.34 saw a more pronounced move, rising from an intraweek low of 12.00% to a high of 12.12%. The 15.06.35 traded at 12.15%.
At the weekly Treasury Bill auction conducted last Wednesday, weighted average yields were seen edging up very marginally only on the 91 day and 182-day tenors, while the 364-day remained steady following three consecutive weeks of increases across all 3 tenors. Accordingly, the 91-day yield rose by 1 basis points to 9.26% and the 182-day by 3 basis points to 9.44% while the rate of the 364-day tenor held unchanged at 9.95%.
The Public Debt Management Office (PDMO) successfully raised the full Rs. 80 billion offered. The 91-day and 182-day tenors recorded acceptances above their respective target allocations, while the 364-day tenor fell short of its target.
Total bids received amounted to 2.06 times the overall offer. Demand extended to the second phase. The second phase was oversubscribed receiving bids amounting to Rs. 16.03 billion as against an offered amount of Rs. 8 billion. Accordingly, the entire offered amount was raised leading to an aggregate subscription of Rs. 88 billion across both phases.
Meanwhile, the foreign holdings of rupee-denominated government securities recorded a net inflow for the second consecutive week, amounting to Rs. 3.24 billion for the week ended 8 October. An increase of 1.60% week on week. Accordingly, the total foreign holdings of rupee treasuries increased to Rs. 202 billion.
Furthermore, the rupee or the USD/LKR rate was seen depreciating, to close the week ending 9 October at Rs. 330.85/330.95 as against its previous week’s closing of Rs. 330.59/330.64. This was subsequent to trading within an intraweek high of Rs. 330.60 and a low of Rs. 331.10 intraweek.
The average daily USD/LKR traded volume over the first four trading days of the week stood at $ 54.48 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
