Rs. 80 b Bond auction records bullish outcome; fully subscribed

Friday, 14 November 2025 00:02 - - {{hitsCtrl.values.hits}}

Secondary Bond market trades within a narrow band; yields close lower

By Wealth Trust Securities

The Treasury Bond auctions held yesterday with a total offered amount of Rs. 80 billion across two available maturities, was fully subscribed at the 1st phase in competitive bidding. Total bids received exceeded the offered amount by 2.73 times. This marked the 1st instance in 7 consecutive Bond auctions to raise the entire offered amount. The weighted average rates reflected the bullish sentiment in the secondary Bond market stemming from the rally which has been seen in the recent weeks.

Maturity-wise the results were as follows:

The 01.07.30 maturity (9.75% coupon) maturity was issued at the weighted average rate of 9.56%, which was well below the rate of 9.80% it was previously raised at the last auction held just one month ago on the 13 October. This reflected the recent bullish momentum in the secondary market and came broadly in line with the market two-way of 9.55-9.57% quoted just before the auction. The entire maturity-wise offered amount of Rs. 35 billion was fully snapped up.
The 15.06.35 maturity (10.70% coupon) was issued at the weighted average rate of 10.69%. This was a remarkable outcome recording a very narrow term premium of above the 15.09.34 maturity which was quoted at 10.55%-10.60%. The entire maturity-wise offered amount of Rs. 45 billion was raised at the 1st phase.

The secondary Bond market yesterday saw yields overall trade sideways and fluctuate within a narrow band. Despite the bulk of the market consolidating, selected maturities such as the 2028s, 2029s and 2032 tenors saw two-way quotes dipping down to close the day lower. Activity and transaction volumes continued to be seen at healthy levels.

The 15.12.26 maturity was seen trading at the rate of 8.12% and the 01.05.27 maturity at the rate of 8.50%. The 15.03.28, 01.05.28 and 01.07.28 maturities traded at the rates of 8.90%, 8.95%-8.94% and 9.00%-8.95% respectively. The 15.09.29, 15.10.29 and 15.12.29 maturities were seen trading at the rates of 9.45%, 9.42%-9.40% and 9.45%-9.40% respectively. The 01.07.30 maturity was seen trading within the range of 9.57%-9.54%. The 15.03.31 maturity was seen trading at the rates of 9.80%-9.79% respectively. The 01.10.32 and 15.12.32 maturities were seen trading at the rates of 10.23%-10.18% and 10.20% respectively. The 01.06.33 and 01.11.33 maturities traded within the rates of 10.42%-10.40% and 10.40% respectively.

The total secondary market Treasury Bond/Bill transacted volume for 12 October was Rs. 19.60 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.90% and 7.96% respectively.

The net liquidity surplus was recorded at Rs. 162.43 billion yesterday deposited at the Central Banks SDFR (Standard Deposit Facility Rate) of 7.25%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating to Rs. 305.50/305.90 as against Rs. 304.60/304.65 the previous day.

The total USD/LKR traded volume for 12 October was $ 88.92 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)