Secondary Bond market yields slide further on bullish sentiment

Friday, 14 August 2026 05:45 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary Bond market extended its rally yesterday, with rates falling further on the back of aggressive buying interest and elevated trading activity.

The 15.02.28 and 15.03.28 maturities traded in the range of 10.15%-10.10%. The 01.07.28 and 15.10.28 traded at 10.25% and 10.30% respectively.

The medium- to long- dated tenors experienced relatively steep intraday declines with the 01.08.30 and 15.10.30 trading down the ranges of 10.93%-10.85% and 10.98%-10.85% respectively. The 15.12.32 traded down the range of 11.40%-11.30% and the 15.01.33 maturity traded at 11.45%. The 01.11.33 traded down from 11.65% to 11.60%. The longer tenor 15.08.36 and 01.07.37 traded down from 12.25%-12.20% and 12.30%-12.25%.

In the money market, the net liquidity surplus was recorded at Rs. 230.91 billion yesterday. An amount of Rs. 103.79 billion was placed at Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% against an amount of Rs. 0.48 billion withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.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 drained Rs. 107.60 billion by way of an overnight repo auction at a weighted average rate of 8.64% as well as Rs. 20 billion by way of a term repo auction at the rate of 8.73%.

The weighted average rates on overnight Call money and Repo were recorded at 8.78% and 8.82% respectively.

Forex market

The USD/LKR spot rate appreciated to close at Rs. 333.50/333.65, from its previous day’s close of Rs. 334.20/334.25. The total USD/LKR traded volume for 12 August was $ 72.25 million.

(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)