Secondary Bond market continues to consolidate

Friday, 21 November 2025 05:11 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary Bond market yesterday overall saw yields continue to consolidate for third consecutive session. Trades were observed anchored to prevailing levels within a narrow band. However, selected tenors saw concentrated demand that caused rates to dip lower. Activity and transaction volumes were seen at healthy levels with several block transactions being executed.

The market sentiment was supported by news that SriLankan Airlines had a pact in principle on the financial parameters of the restructuring of its bonds. The agreement is expected to help SriLankan Airlines restore normal relations with external creditors and allow it to focus on continuing operations. As well as news that the Inland Revenue Department had recorded the highest tax revenue collection in its history for the year 2025.

The 01.06.26 maturity traded at the rate of 8.15%. The 15.10.27 maturity traded at the rate of 8.50%. The 15.03.28 and 15.10.28 maturities were seen trading at the rates of 9.03%-9.01% and 9.08% respectively. The 15.09.29, 15.10.29 and 15.12.29 maturities were seen trading at the 9.52%-9.50%, 9.50% and 9.52%-9.49% respectively.

The 01.07.30 maturity saw strong buying interest and traded down the range of 9.62%-9.58%. The 15.03.31 maturity traded at the rate of 9.95%. The 15.12.32 maturity traded at the rate of 10.25%.

The total secondary market Treasury Bond/Bill transacted volume for 19 October was Rs. 19.97 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.93% and 7.96% respectively.

In money markets, the net liquidity surplus was recorded at Rs. 102.60 billion yesterday. An amount of Rs. 104.44 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%, while an amount of Rs. 1.84 billion was withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 8.25%.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day at Rs. 308.10/308.30 as against Rs. 308.10/308.50 the previous day.

The total USD/LKR traded volume for 19 October was $ 122.95 million.

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