Saturday Jun 13, 2026
Saturday Jun 13, 2026
Friday, 12 June 2026 00:02 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weighted average yield rates at yesterday’s Treasury Bond auction delivers mixed results. The auction was failed to raise the offered amount across both phases and saw the all bids on the longer tenor maturity rejected.
The prevailing Middle Eastern tensions as well as volatile and elevated crude oil prices continued to weigh on sentiment and result in a bearish bias. However, weighted average yields came in below market expectations, a remarkable outcome given the prevailing backdrop. The bids received to accepted amount ratio stood at 1.97 times.
Maturity-wise the results were as follows:
The shorter tenor 15.05.30 maturity was issued at a weighted average yield of 11.65% which was below and in contrast to pre-auction market levels as trades were observed on the similar 01.03.30 and 15.05.30 maturity itself at the rates of 12.50%. However, the maturity failed to raise its respective offered amount across both phases.
The 15.12.32 maturity was issued at the weighted average yield of 12.69%, however the maturity also failed to raise its respective offered amount across both phases.
The longer tenor 01.07.37 maturity was rejected. Given in the table below are the details of the auction.
The secondary Bond market yesterday saw rates initially increase on the back of news of escalating tensions between the US and Iran as well as an increase in crude oil prices. However, post release of the bond auction results rates were seen coming down with two-way quotes dropping. Activity was seen at subdued levels however transaction volumes were boosted by the execution of block trades.
Accordingly, pre-auction in the early hours of the day yields were seen rising with the 01.05.28, 15.09.29, 15.10.29, 01.03.30 and 15.05.30 maturities trading at the rates of 11.92%, 12.10%-12.50% and the rest all at 12.50% each respectively. The 01.06.33, 01.11.33 and 15.03.35 maturities were seen trading at the rates of 13.00% each and 13.25% respectively.
Post auction secondary market two-way quotes were seen lower, with the 01.08.30 maturity trading lower at the rate of 12.20%.
In money market, the net liquidity surplus was recorded at Rs. 66.62 billion yesterday. An amount of Rs. 92.62 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 26 billion withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.
The weighted average rates on overnight call money and Repo were recorded at 9.19% and 9.24% respectively.
Forex market
In the forex market, the USD/LKR rate on spot contracts were seen closing the day at Rs. 335.00/337.50 as against its previous day’s closing level of Rs. 332.25/333.00.
The total USD/LKR traded volume for 10th June 2026 was $ 85.67 million.
(References: Public Debt Management Office- Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
