Friday Mar 20, 2026
Friday Mar 20, 2026
Thursday, 19 March 2026 04:44 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weekly Treasury Bill auction conducted yesterday saw weighted average yields remain unchanged across the board. Accordingly, the rate on the 91-day Bill was recorded at 7.61%, 182-day Bill at 7.91% and the 364-day Bill at 8.23%. This was in stark contrast to the secondary Bond market which has witnessed an uptrend in rates coinciding with the ongoing Middle East conflict.
The auction was undersubscribed at the first phase in competitive bidding. Raising only Rs. 60.79 billion, or 50.66% of the total offered amount of Rs. 120 billion. The bid-to-cover ratio stood at 1.73 times.
The Phase II subscription across all three tenors is now open until 3.00 pm of business day prior to settlement date (i.e., 19.03.2026) at the WAYRs determined for the said ISINs at the auction.
The secondary Bond market yesterday continued the upward yield trend, with bearish sentiment persisting amid ongoing geopolitical tensions and continued elevated oil prices. Spill-over effects from the conflict in the form of fuel rationing and travel disruptions dampened sentiment further and activity remained subdued. However, transaction volumes were seen at healthy levels boosted by several block transactions.
In terms of the Secondary Bond market trade summary, the 15.05.26 maturity traded within the range of 8.00%-8.10%. The 15.09.27 maturity traded at the rate of 8.50%. The 15.10.28 and 15.12.28 maturities traded at the rate of 9.35%. The 15.09.29 and 15.12.29 maturities traded up the ranges of 9.70%-9.72% and 9.70%-9.75% respectively. The 01.03.30 maturity traded at the rate of 9.75%. The 15.03.31 maturity traded up the range of 10.00%-10.05%. The 01.11.33 maturity traded at the rate of 10.65%. The 15.06.35 traded at 10.98%.
The total secondary market Treasury Bond/Bill transacted volume for 17 March was Rs. 16.13 billion.
In money market, the net liquidity surplus in money market was recorded at Rs. 341.21 billion yesterday. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 100 billion by way of overnight Repo auction at a weighted average rate of 7.58% and an amount of Rs. 68 billion by way of seven-day Repo auction at a weighted average rate of 7.61%.
Further an amount of Rs. 173.23 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% as against an amount of Rs. 0.03 billion withdrawn from the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%.
The weighted average rates on overnight call money and Repo yesterday stood at 7.59% and 7.59% respectively.
Forex market
In the Forex market, the USD/LKR rate on spot contracts closed the day at 311.30/311.50, as against its previous day’s closing level of Rs. 311.30/311.40.
The total USD/LKR traded volume for 17 March was $ 57 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
