Secondary bond market yields edge up marginally

Wednesday, 16 July 2025 00:10 - - {{hitsCtrl.values.hits}}

Rs. 85 b T-bill auction in focus
Rupee depreciates

By Wealth Trust Securities

The Secondary bond market yields were seen creeping upward yesterday on thin volumes as most market participants continued to be on sidelines.

Limited trades were observed on the 01.05.28 and 15.12.28 maturities at the rates of 8.85% and 9.00% respectively. In addition, the 15.12.29 and 15.09.34 maturities were seen changing hands within the range of 9.50%-9.52% and 10.85%-10.86% respectively.

In secondary market bills, December and January Bills were seen trading at the rates of 7.77%-7.80% and 7.85% to 7.94% respectively.

This comes ahead of the Treasury bill auction due today. The auction will have on offer a total amount of Rs. 85 billion on offer, an increase of Rs. 12.5 billion over the previous week. This will consist of Rs. 30 billion on the 91-day maturity, Rs. 30 billion on the 182-day and Rs. 25 billion on the 364-day maturity.

For reference the weekly Treasury bill auction conducted last Wednesday (08/07/25) was undersubscribed. The auction raised 91.74% or Rs. 66.51 billion out of the entire Rs. 72.50 billion offered at the 1st phase in competitive bidding. This was despite total bids received exceeding the offered amount by 1.72 times. The weighted average yield rates were seen increasing across the board for the first time in 14 weeks since 2 April auction. Accordingly, the weighted average rate on the 91-day tenor increased by 05 basis points to 7.60%, the 182-day tenor by 06 basis points to 7.84% and the 364-day tenor by 05 basis point to 7.99%.

The total secondary market Treasury bond/bill transacted volume for 14 July was Rs. 5.64 billion.

In money markets, the weighted average rates on overnight call money and Repo stood at 7.75% and 7.77% respectively.

The net liquidity surplus was recorded at Rs. 84.26 billion yesterday. An amount of Rs. 11.56 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 95.82 billion was deposited at Central Banks SDFR (Standard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. 301.05/301.20 as against 300.97/301.00 the previous day.

The total USD/LKR traded volume for 14 July was $ 51.55 million.

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

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