Wednesday Mar 25, 2026
Wednesday Mar 25, 2026
Tuesday, 24 March 2026 03:15 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market initially commenced the new week on a bearish note, with yields continuing to trend higher, extending the momentum observed the prior week. Market sentiment remained heavily influenced by persistent external pressures, as ongoing geopolitical tensions in the Middle East and elevated global oil prices continued to weigh on investor confidence.
Activity was relatively subdued, as investors largely stayed on the sidelines awaiting clearer direction on external developments. However, transaction volumes were seen at robust levels boosted by several block transactions. Selling pressure was evident, particularly on the short to belly end of the curve, resulting in an upward shift in yields. Tactical buying interest was observed kicking in at the elevated yield levels; however, it largely functioned as absorption rather than a shift in sentiment.
Towards the close of the session, a notable shift in external developments was observed as it was announced that Brent crude oil futures plunged more than 10% to around $ 100 per barrel. This came after US President Donald Trump signalled de-escalation by ordering a five day pause on planned US strikes against Iranian energy infrastructure. Secondary Bond Market two-way prices were seen recovering strongly and quoted lower just as the trading session ended.
Accordingly, trades were seen on selected maturities.
The 01.05.27 maturity traded up the range of 8.57%-8.72%. The 15.02.28 maturity was seen trading up from 9.60%-9.70%. The 15.09.29, 15.10.29 and 15.12.29 maturities were seen trading up the ranges of 10.05%-10.12%, 9.90%-10.08%, 9.85%-10.12%. The 01.03.30 and 15.05.30 maturities were seen trading up the ranges of 10.00%-10.10% and 10.18%-10.22% respectively. The 15.03.31 maturity traded up the range of 10.15%-10.30%. The 01.12.31 maturity traded up the range of 10.33%-10.37%. The 15.12.32 maturity traded at the rate of 10.75% to 10.85%. The 01.06.33 maturity traded within the range of 11.02%-11.05%. The 15.09.34 traded up the range of 11.12%-11.23%.
The total secondary market Treasury Bond/Bill transacted volume for 20 March was Rs. 23.63 billion.
In money markets, the net liquidity surplus was recorded at Rs. 240.27 billion yesterday. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 87 billion by way of overnight Repo auction at a weighted average rate of 7.59% while an amount of Rs 153.27 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25%.
The weighted average rates on overnight call money and Repo stood at 7.59% and 7.61% respectively.
Forex market
The USD/LKR rate on spot contracts was seen depreciating further to close the day at Rs. 313.00/314.00 as against the previous day’s closing level of Rs. 311.85/312.00.
The total USD/LKR traded volume for 20 March was $ 62.28 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
