Secondary Bond market yields move up

Thursday, 19 June 2025 03:04 - - {{hitsCtrl.values.hits}}

Treasury Bill auction undersubscribed; 182-day tenor edges up
Rupee appreciates

By WealthTrust Securities

The weekly Treasury Bill auction conducted yesterday went undersubscribed, as only 86.83% or Rs. 114.62 billion of its total offered volume of Rs. 132 billion was accepted in successful bids. The total bids received exceeded the offered amount by 1.65 times.

The weighted average yield rate on the 182-day tenor increased marginally by 01 basis point to 7.73%. However, the weighted average yield rate on the 91-day tenor and 364-day tenors remained steady at 7.55% and 7.94% respectively.

The Phase II subscription for the 182-day and 364-day tenors is now open until 3 p.m. of business day prior to settlement date (i.e., 19.06.2025) at the WAYRs determined for the said ISINs at the auction.

Meanwhile, the yields on Secondary Bond market yesterday saw an uptick in yields as the Iran-Israel conflict continued to dampen sentiment. The said sentiment was further supported by the decrease in money market liquidity. Market activity and transaction volumes remained at moderate levels.

The 01.05.27 and 15.09.27 maturities traded within the rates of 8.35%-8.45% and 8.53%-8.55%. The 15.03.28 and 01.05.28 maturities were seen traded up the ranges of 8.85%-8.90% and 8.90%-8.93% respectively. The 01.07.28 maturity traded at the rates of 8.91% and 8.93%. The 15.09.29 and 15.12.29 maturities traded up from intraday lows to highs of 9.49%-9.50% and 9.52%-9.55% respectively.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.70% and 7.72% respectively.

The net liquidity surplus stood at Rs. 101.14 billion yesterday, as against Rs. 187.53 billion at the close of last week. An amount of Rs. 2.33 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 103.46 billion was deposited at Central Bank’s SDFR (Standard Deposit Facility Rate) of 7.25%.

Forex market

In the Forex market, the USD/LKR rate on spot contracts appreciated to close Rs. 300.40/300.60 as against its previous day’s closing level of Rs. 300.70/301.00.

The total USD/LKR traded volume for 17 June was $ 69.55 million.

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

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