Monday Nov 03, 2025
Monday Nov 03, 2025
Tuesday, 14 October 2025 01:15 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market was at a complete standstill yesterday during the early trading hours - while the auction was ongoing and ahead of the release of auction results - with two-way quotes in the secondary market holding broadly steady around pre-existing levels.
However, following the release of the auction results, market activity increased marginally resulting in a few sparse trades. Despite this, yields remained largely unchanged, leaving the market in a consolidation phase.
The 15.10.29 maturity was seen trading at the rate of 9.68% and the 01.07.30 maturity at the rate of 9.80% post-auction.
The Treasury Bond auctions held yesterday with a total offered amount of Rs. 181 billion across three available maturities, went undersubscribed. The auctions raised only Rs. 162.11 billion or 89.56% out of the total offered amount in successful bids across both phases, despite total bids received exceeding the offered amount by 2.21 times.
This marked the sixth consecutive Bond auction to raise less than the offered amount. Maturity-wise the results were as follows:
The 01.07.30 maturity (9.75% coupon) maturity was issued at the weighted average rate of 9.80%, broadly in-line with market expectations as the maturity was quoted at the rate of 9.75%/9.80% prior to auction. However, it failed to achieve the maturity-wise target offered amount of Rs .95 billion at the 1st phase in competitive bidding, prompting the opening of the 2nd phase. At the conclusion of both phases the maturity raised Rs 76.11 or 80.10% of the offered amount.
The 01.11.33 maturity (9.00% coupon) was issued at the weighted average rate of 10.72%, which was below market expectations as the maturity was observed quoted at the two-way rate of 10.75%/10.80% prior to auction. The entire maturity-wise offered amount of Rs 45.00 billion was raised across both phases.
The longer tenor 01.07.37 maturity (10.75% coupon) was issued at the weighted average rate of 11.01%. The entire maturity-wise offered amount of Rs. 41 billion was raised at the 1st phase in competitive bidding.
The total secondary market Treasury Bond/Bill transacted volume for 10 October was Rs. 11.74 billion.
In money markets, the weighted average rates on overnight call money and Repo stood at 7.87% and 7.88% respectively.
The net liquidity surplus was recorded at Rs. 167.21 billion yesterday. An amount of Rs. 11.93 billion was withdrawn from the Central Banks SLFR (Standing Lending Facility Rate) of 8.25%, while an amount of Rs. 179.14 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 steady at Rs. 302.59/302.62 as against Rs. 302.60/302.68 the previous day.
The total USD/LKR traded volume for 10th October was $ 111.65 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)
