Secondary bond market yields consolidate

Tuesday, 3 June 2025 02:13 - - {{hitsCtrl.values.hits}}

Rupee steady

By Wealth Trust Securities

The secondary bond market kicked off the week with yields trading sideways, fluctuating within a narrow band. As such the market was seen consolidating following the bull run triggered by the policy rate cut announced on 22 May. Market activity and transaction volumes were observed at subdued levels.

The 15.03.28 maturity traded at the rate of 8.85%. The 01.05.28 ad 01.07.28 maturities were seen transacting at the rates of 8.85% and 8.90%-8.92%. The 15.10.28 maturity traded 8.95%-9.00%. The 15.06.29, 15.09.29 and 15.12.29 maturities were seen trading within the ranges of 9.50%-9.55%, 9.60%-9.62% and 9.55%-9.63%. The 15.12.32 maturity traded between 10.20%-10.30%. The 15.09.34 traded within the range of 10.45%-10.49% and the 15.03.35 maturity between 10.50-10.52%.

The total secondary market Treasury bond/bill transacted volume for 30 May was Rs. 37.20 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.75% and 7.76% respectively.

The net liquidity surplus decreased to Rs. 149.94 billion yesterday. An amount of Rs. 0.05 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 149.99 billion was deposited at Central Bank’s SDFR (Standard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 broadly steady at Rs. 299.54/299.59 as against 299.50/299.60 the previous day.

The total USD/LKR traded volume for 30 May was $ 86.75 million.

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