Thursday Feb 05, 2026
Thursday Feb 05, 2026
Wednesday, 19 November 2025 00:02 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday saw yields on the short end of the yield curve hold broadly steady and continue to consolidate at prevailing levels. However, the long end of the yield curve saw strong demand which caused rates (two-way quotes) to edge down lower as renewed buying interest kicked in.
Overall market activity and transaction volumes were healthy, as several sizeable block trades were executed during periods of heightened trading interest.
In terms of the secondary Bond market trade summary, the 01.05.28 and 15.10.28 maturities were seen trading at the rates of 9.03%-9.02% and 9.07% respectively. The 15.06.29 and 15.10.29 maturities traded at the rates of 9.44%-9.42% and 9.48% respectively. The 01.07.30 maturity traded at the rate of 9.60%. The 01.11.33 maturity traded down the range of 10.47%-10.45% and the 15.09.34 maturity saw its yield decline from an intraday high of 10.55%-10.53%.
Today’s scheduled weekly Treasury Bill auction will have on offer a total amount of Rs. 86 billion. The auction will be comprising of Rs. 16 billion in 91-day Bills, Rs. 45 billion in 182-day Bills, and Rs. 25 billion in 364-day Bills. This marks the fourth consecutive auction where the offered amount is considerably below the maturing volume, which is estimated at around Rs. 114.27 billion.
For context, at the weekly Treasury Bill auction held last Wednesday (12 November) the weighted average rates remained broadly steady, with the yields on the 91-day and the 364-day tenors remaining unchanged at 7.52% and 8.04% respectively.
However, the 182-day tenor registered a marginal increase of 01 basis point to 7.91%. This marked the 17th week where T-Bill rates have stayed broadly anchored around prevailing levels. However, the auction was undersubscribed, raising only 56.25% or Rs 43.31 billion out of the Rs 77.00 billion offered. This was the second consecutive auction to be undersubscribed.
The total secondary market Treasury Bond/Bill transacted volume for 17 November was Rs. 7.62 billion. In money markets, the net liquidity surplus was recorded at Rs. 87.79 billion yesterday. An amount of Rs. 88.55 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%, while an amount of Rs. 0.76 billion was withdrawn from the Central Bank’s SLFR (Standard Lending Facility Rate) of 8.25%.
The weighted average rates on call money and repo were registered at 7.94% and 7.96% respectively.
Forex Market
In the Forex Market, the USD/LKR rate on spot contracts closed the day depreciating to Rs. 308.25/308.75 as against
Rs. 307.00/307.25 the previous day.
The total USD/LKR traded volume for 17 November was $ 68.15 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
