Secondary bond market starts off positively; Yields continue to decline

Tuesday, 1 July 2025 00:10 - - {{hitsCtrl.values.hits}}

CCPI records negative inflation at -0.6% YoY in June
Rupee depreciates

By Wealth Trust Securities

The secondary bond market opened the week on a positive note and saw yields edge down further on the back of buying interest as the concerns regarding the Israel-Iran conflict continued to fade away. Market activity and transaction volumes were seen at moderate levels.

Accordingly, the 15.02.28 and 15.03.28 maturities were seen trading within the range of 8.80%-8.70% collectively. The 01.09.28 and 15.10.28 maturities were seen trading down the range 8.90%-8.85% collectively. The 15.10.29 and 15.12.29 maturities traded at the rates of 9.38% and 9.40%-9.36% respectively. The 15.12.32 traded within the range of 10.36%-10.35%.

On the inflation front, the Colombo Consumer Price Index - CCPI (Base: 2021=100) inflation for the month of June 2025 was recorded at - 0.60% on its point to point as against - 0.70% recorded in May 2025. This marks the 10th consecutive month of negative inflation. The annual average inflation was recorded at -1.40%.

The total secondary market Treasury bond/bill transacted volume for 27 June was Rs. 36.15 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.75% each respectively.

The net liquidity surplus was recorded at Rs. 138.12 billion yesterday. An amount of Rs. 5.62 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 143.74 billion was deposited at Central Bank’s SDFR (Standard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 closed the day depreciating to Rs. 300.15/300.30 as against 299.88/299.95 the previous day.

The total USD/LKR traded volume for 27 June was $ 133.73 million.

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

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