Secondary Bond market yields edge up further

Friday, 15 May 2026 00:16 -     - {{hitsCtrl.values.hits}}

  • Bond auction direct issuance window sees overwhelming demand

By Wealth Trust Securities


The Secondary Bond yesterday market saw yields edge up further on the back of profit taking pressure and amidst the uncertainty stemming from the US-China Summit where the Iran war is a key point of discussion.

Activity was seen at subdued levels amidst the prevailing uncertainty; however, transaction volumes were seen at healthy levels due to the execution of several block trades.

The 15.12.26 maturity traded at the rate of 8.40%. The 15.02.28 maturity traded at the rate of 9.65%. The 15.06.29 maturity changed hands at level of 9.85%. The 15.09.29 maturity traded at the rates of 9.90%-9.95% while 15.10.29 and 15.12.29 maturities traded at the level of 9.95% each. The 01.03.30 and 01.08.30 maturities changed hands at the rate of 10.00% and 10.10% respectively. The 01.10.32 maturity traded at the rate of 10.75%.

Further to the Treasury Bond auction held on 12 May 2026, Rs. 13 billion was raised being the maximum amount offered. This was raised out of the total market subscription of Rs. 73.08 billion via the Direct Issuance Window.

In money markets, the net liquidity surplus was recorded at Rs. 253.75 billion yesterday. An amount of Rs. 207.33 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% as against an amount of Rs 18.58 billion raised from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%. In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs. 65 billion by way of overnight repo auction at a weighted average rate of 7.70%.



Forex market 

The USD/LKR rate on spot contracts was seen trading within the highs and lows of Rs. 324.25 to 325.00 respectively.

The total USD/LKR traded volume for 13 May was $ 44.90 million. 

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

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