Secondary Bond market yields trade higher as global oil prices remain elevated

Tuesday, 17 March 2026 06:46 - - {{hitsCtrl.values.hits}}

Rupee depreciates

By Wealth Trust Securities

The secondary Bond market yesterday opened the week with yields increasing as the ongoing unrest in the Middle East and elevated global oil prices continue to unsettle investors.

Brent crude remained above $ 100 a barrel reaching the highest levels since 2022, as shipping traffic through the Strait of Hormuz has been severely disrupted. Activity and transaction volumes were seen at subdued levels as market participants were seen adopting a cautious stance amidst the prevailing situation. As a result, secondary market two-way quotes closed higher on the day.

Accordingly limited trades were seen on selected maturities.

The 01.07.28 and 15.12.28 maturities traded higher at the rates of 9.25% and 9.30% respectively. The 15.12.29 maturity traded at the rate of 9.65%. The 01.03.30 maturity traded up the range of 9.70% to 9.75%. The 15.03.31 maturity was seen trading at the rate of 9.90% and the 01.10.32 maturity at the rate of 10.30%. The 15.09.34 maturity traded at the rate of 10.82%.

The total secondary market Treasury Bond/Bill transacted volume for 13 March was Rs. 7.93 billion.

In money markets, the net liquidity surplus was recorded at Rs. 245.53 billion yesterday. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka was seen draining out an amount of Rs. 88 billion by way of overnight repo auction at a weighted average rate of 7.46% while an amount of Rs. 157.53 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. 311.50/311.60 as against the previous day’s closing level of Rs. 311.15/311.25.

The total USD/LKR traded volume for 13 March was $ 36.35 million.

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