Secondary bond market yields edge up marginally

Tuesday, 17 June 2025 03:00 - - {{hitsCtrl.values.hits}}

GDP grows 4.8% YoY in 1Q25
Rupee depreciates

By Wealth Trust Securities

The secondary bond market opened the week with yields initially quoted higher, as sentiment was dampened by the prevailing Israel-Iran conflict, mirroring declines in the stock market. However, renewed buying interest at these elevated levels curtailed further upward movement and sparked a recovery, with yields ultimately closing the day only marginally higher. Market activity and transaction volumes were seen at healthy levels.

The 15.12.26 maturity traded at the rate of 8.00%. The 01.05.27 and 15.09.27 maturities were seen trading at the rates of 8.35% and 8.50% respectively. The 15.02.28, 15.03.28, and 01.05.28 maturities were seen trading at the rates of 8.75%-8.80%, 8.80% to 8.85% and 8.90% respectively. The 15.09.29 maturity traded within the range of 9.46%-9.48%. The 15.12.29 maturity initially hit an intraday high of 9.58% before recovering to trade at an intraday low of 9.53%. The 15.12.32 maturity held broadly steady and traded within the range of 10.31%-10.34%. The 15.09.34 maturity traded at the rates of 10.45%-10.48%.

In addition, it was reported that Sri Lanka’s GDP grew by 4.80% during the 1st Quarter of 2025 amidst a low inflation environment as 12-month moving average CCPI inflation was recorded at (0.80%) as at March 2025.

The total secondary market Treasury bond/bill transacted volume for 13 June was Rs. 11.15 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.70% and 7.73% respectively.

The net liquidity surplus decreased to Rs. 131.87 billion yesterday. An amount of Rs. 0.34 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 132.21 billion was deposited at Central Bank’s SDFR (Standard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. 300.90/301.15 as against 299.70/300.00 the previous day.

The total USD/LKR traded volume for 13 June was $ 99.40 million.

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

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