Wednesday Oct 28, 2026
Wednesday Oct 28, 2026
Wednesday, 28 October 2026 00:00 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday saw yields increase, mainly on selected tenors on the back of selling interest. Activity was seen at a moderate level while transaction volumes were boosted by the execution of several block transactions as the elevated yield levels attracted absorptive buying interest.
In terms of the trade summary, the 15.10.30 traded at the rates of 11.60%-11.63%. On the 2031 maturity bucket, the 01.02.31, 15.03.31 and 01.12.31 maturities traded at the rates of 11.75%, 11.80% and 11.90% respectively. The 01.11.33 maturity traded at the rate of 12.37%. The 2034 tenors moved up with the 15.06.34 and 15.09.34 maturities trading at the rates of 12.50%-12.55% and 12.55%-12.57% respectively.
The Treasury Bill auction scheduled for today will have a total of Rs. 100 billion on offer, comprising of Rs. 50.00 billion on the 91-day maturity, Rs. 25.00 billion on the 182-day maturity and Rs. 25.00 billion on the 364-day maturity. The amount on offer is below the estimated Rs. 130.25 billion in maturities corresponding to the auction.
At the weekly Treasury Bill auction conducted last Wednesday (21st Oct), weighted average yields on the 182-day and 364-day tenors remained unchanged at 9.44% and 9.95% respectively for the third straight week. However, the 91-day tenor maturity saw its yield edge up marginally by 02 basis points to 9.32%.
The Public Debt Management Office (PDMO) raised only Rs. 80.611 billion or 80.61% in total out of the Rs. 100.00 billion offered in total. The 91-day tenor recorded acceptance above its respective target allocation, while the 182-day and 364-day recorded acceptances below their respective offered amounts.
Total bids received amounted to 1.86 times the overall offer. A further amount of Rs. 2.28 billion was raised at the Phase 2 of the auction.
In addition, the details of the Treasury Bond auction due to be held on Thursday, the 29th of October are as follows. The round of auctions will have a total offered amount of Rs. 100.00 billion across three available maturities.
The auction will be comprised of: Rs. 40 billion from a 15 May 2030 maturity bearing a coupon rate of 11.00%; Rs. 40 billion from a 15 October 2034 maturity bearing a coupon rate of 11.70%; Rs. 20 billion from a 15 August 2036 maturity bearing a coupon rate of 10.85%; The settlement for which will be held on 2 November 2026.
In the money market, the net liquidity surplus stood at Rs. 120.50 billion yesterday. A total of Rs. 93.75 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% while no funds were withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka mopped out Rs. 26.75 billion by way of an overnight repo auction at a weighted average yield of 8.75%.
The weighted average yields on overnight call money and repos were recorded at 9.02% and 9.07% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 332.45/332.50 yesterday, with the rupee depreciating against its previous day’s closing of Rs. 332.25/332.40.
The total USD/LKR traded volume for 26th October amounted to $ 53.75 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
