Tuesday Jul 28, 2026
Tuesday Jul 28, 2026
Tuesday, 21 July 2026 07:42 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market started off a fresh trading week on a slow note yesterday, as market participants adopted a watchful stance ahead of the Monetary Policy announcement due tomorrow (22). Yields were seen quoted marginally higher as market sentiment was weighed down by reports that oil prices surged following fresh military exchanges between the US and Iran.
Activity remained at a virtual standstill for much of the day. However, a few block transactions helped support overall transaction volumes. Towards the close of the session, crude oil pared its earlier gains to trade around $ 88 per barrel after briefly topping $ 91, as signs of renewed diplomatic efforts between the US and Iran eased supply concerns. As a result yields closed broadly steady to marginally higher.
Limited trades were observed on the selected tenors of 01.05.27, 15.12.32 and 15.01.33 maturities at yields of 10.30%, 12% and 12% respectively.
In the money market, the net liquidity surplus increased to Rs. 148.13 billion yesterday. An amount of Rs. 103.38 billion was deposited with the Central Bank’s SDFR (Standing Deposit Facility Rate) at 8.25% as against Rs. 15.25 billion withdrawn through the Central Bank’s SLFR (Standing Lending Facility Rate) at 9.25%
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained Rs. 60 billion by way of overnight repo auction at a weighted average rate of 8.75%.
The weighted average rates on overnight Call money and Repo were recorded at 8.96% and 9% respectively.
Forex market
The USD/LKR rate on spot contracts closed weaker, depreciating to Rs. 336.25/336.30 yesterday, compared with its previous day’s close of Rs. 336.15/336.30.
The total USD/LKR traded volume for 17 July was $ 74.85 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
