Secondary Bond market yields hold steady; activity subdued

Tuesday, 26 August 2025 00:03 -     - {{hitsCtrl.values.hits}}

  • Rupee depreciates

 

By Wealth Trust Securities

The secondary Bond market yesterday saw activity and transaction volumes at subdued levels. Sparse trades were observed on thin volumes focused on selected maturities. Yields were seen holding broadly steady, as market participants gravitated towards the sidelines, adopting a wait and see approach amid the absence of strong directional cues. As a result, the market was in a holding pattern throughout the day.

Accordingly, the 01.05.27 and 15.09.27 maturities were seen trading at the rates of 8.47% and 8.55%-8.60%. The 01.05.28 and 15.12.32 maturities changed hands at the rates of 8.85% and 10.28%-10.30% respectively.

The total secondary market Treasury Bond/Bill transacted volume for 22 August was Rs. 10.02 billion.

In the money market, the net liquidity surplus was recorded at Rs. 111.58 billion. Rs. 0.22 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 111.80 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.25%. 

The weighted average rates on call money and repo were registered at 7.86% and 7.87% respectively.

Forex market 

In the Forex market, the USD/LKR rate on spot contracts closed the day depreciating to Rs. 302.25/302.35 as against Rs. 301.95/302.05 the previous day.

The total USD/LKR traded volume for 22 August was $ 136.30 million.

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

 

COMMENTS