Secondary Bond market starts off on positive note

Tuesday, 11 August 2026 00:15 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary Bond market kicked off the week on a strong footing, extending the rally seen the previous week. Persistently elevated market liquidity, which continued to exert downward pressure on money market rates, together with the limited supply of Treasury Bonds available at auction over the month of August, were seen as the primary drivers. As such, aggressive buying interest was seen pushing rates lower on the back of robust activity and transaction volumes.

The 15.12.29 maturity traded at the rate of 10.90%. The 2030 tenors rallied strongly experiencing relatively steep intraday declines with the 01.03.30, 01.08.30 and 15.10.30 maturities trading lower at 11.00%, 11.20%-11.15% and 11.25%-11.15% respectively. The 01.02.31, 15.05.31 and 01.12.31 maturities traded down from 11.40% to 11.24%, 11.30%, 11.50% to 11.45%. The 01.10.32 maturity traded at 11.60%. The 15.01.33 traded down from 11.95% to 11.90% and the 15.10.34 maturity down from 12.10% to 11.97%. The longer tenor 15.08.36 and 01.07.37 maturities declined down from 12.55% to 12.50% and 12.60% to 12.50% respectively.

In the money market, the net liquidity surplus stood at Rs. 196.36 billion yesterday. Of this, Rs. 116.36 billion was absorbed via the Central Bank›s Standing Deposit Facility (SDF) at 8.25%, while a further Rs. 80 billion was mopped up through an overnight repo auction conducted by the Domestic Operations Department (DOD) at a weighted average rate of 8.75%. An additional Rs. 10 billion was absorbed through a 14-day term Repo auction at a rate of 9.09%.

The weighted average rates on overnight call money and Repos were recorded at 8.88% and 8.93% respectively.

Forex market

The USD/LKR rate on spot contracts closed the day at Rs. 335.10/335.18, compared to its previous close of Rs. 335.37/335.42.

The total USD/LKR traded volume for 7 August was

$ 105.80 million.

(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)