Secondary Bond market yields decrease

Thursday, 3 July 2025 00:59 - - {{hitsCtrl.values.hits}}

Rs. 113 b Treasury bill auction fully subscribed
Rupee appreciates

By WealthTrust Securities

The weekly Treasury Bill auction conducted yesterday was fully subscribed following two consecutive weeks of undersubscription. The auction raised the entire Rs. 113 billion offer at the first phase in competitive bidding. The total bids received exceeded the offered amount by 1.57 times.

Interestingly, the weighted average yield rate on the 182-day tenor increased by 03 basis points to 7.78%, marking the third consecutive weekly increase. However, the weighted average yield rate on the 91-day tenor and 364-day tenors remained steady at 7.55% and 7.94% respectively. This marks the fifth consecutive week that these two tenors have remained unchanged at these levels.

The Phase II subscription for the 91-day and 182-day tenors is now open until 3 p.m. of business day prior to settlement date (i.e., today) at the WAYRs determined for the said ISINs at the auction.

Meanwhile, the Secondary Bond market saw yields decline across board, driven by continued buying interest. Market activity and transaction volumes were moderate.

The 15.09.27 maturity traded at the rate of 8.40%. The 15.03.28, 01.05.28 and 15.10.28 maturities were seen trading at the rates of 8.71%-8.70%, 8.76%-8.72% and 8.80%. The 15.10.29 and 15.12.29 maturities saw trades at the rates of 9.38% and 9.40%-9.39%. The 15.03.31 maturity traded at the rate of 9.95%. The 01.11.33 maturity traded at the rate of 10.65% to 10.61%.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.74% and 7.75% respectively while the net liquidity surplus stood at Rs. 99.35 billion.

Forex market

In the Forex market, the USD/LKR rate on spot contracts appreciated to close Rs. 299.95/300.05 as against its previous day’s closing level of Rs. 300.00/300.10.

The total USD/LKR traded volume for 1 July was $ 46.00 million.

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

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