Friday Sep 25, 2026
Friday Sep 25, 2026
Wednesday, 23 September 2026 04:57 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The secondary Bond market yesterday saw yields extend their downward trajectory, carrying forward the positive momentum seen over recent sessions.
Rates initially edged up on the back of some profit-taking at the very start of the session. However, the move proved short-lived as sentiment received a significant boost following Fitch Ratings’ upgrade of Sri Lanka’s sovereign rating to ‘B-’ with a Stable Outlook, marking a major positive development for the country’s credit profile. The bullish tone was further reinforced by Brent crude falling below $ 100 per barrel, easing concerns over inflationary and external sector pressures.
The combination of these strongly positive drivers triggered a sharp rally, with robust buying interest pushing yields notably lower across the curve. Activity and transaction volumes remained healthy, supported by the execution of several sizeable block transactions.
The 15.12.29 maturity traded down the range of 10.85%-10.75% subsequent to the 15.10.29 trading at 11.05% in the morning. The 01.08.30 traded down the range of 11.30% to 11.10% and the 15.10.30 down the range of 11.40%-11.15%. The 01.02.31 traded down the range of 11.40%-11.17%. The 01.10.32 and 15.12.32 traded lower at the rates of 11.35% and 11.50%-11.45% respectively. The 01.06.33 and 01.11.33 traded down the ranges of 11.80%-11.70% and 11.85%-11.70% respectively. The 15.06.34 and 15.10.34 traded at the rate of 11.95% and down the range of 12.01% to 11.85%. The 15.06.35 traded down the range of 12.00%-11.97%.
The Treasury Bill auction scheduled for today will have a total of Rs. 60 billion on offer. This will comprise of Rs. 20 billion on the 91-day maturity, Rs. 25 billion on the 182-day maturity and Rs. 15 billion on the 364-day maturity.
To recap, at last Wednesday’s weekly Treasury Bill auction, weighted averages reversed course and increased across the board breaking a downtrend streak of 11 weeks.
Accordingly, the yield on the 91-day yield rose by 15 basis points to 9.18%, the 182-day Bill by 12 basis points to 9.36% and the 364-day Bill by 11 basis points to 9.88%.
The Public Debt Management Office (PDMO) successfully raised the entire Rs. 70 billion offered, with each tenor meeting its targeted allocation. Total bids received amounted to 2.45 times the offer.
In the money market, the net liquidity surplus was recorded at Rs. 94.09 billion. Rs. 71.72 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 0.13 billion withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 9.25%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka absorbed Rs. 22.50 billion in liquidity through a series of repo auctions. This comprised Rs. 7.50 billion via an overnight repo auction and Rs. 15.00 billion through a 7-day term repo auction at rates of 8.74% and 8.75% respectively.
The weighted average yields on overnight call money and repos were recorded at 8.92% and 8.97% respectively.
Forex market
The USD/LKR rate on spot contracts was seen appreciating to close at Rs. 329.40/329.60 yesterday, against the Rs. 330.75/330.90 recorded on the previous day. The total USD/LKR traded volume for 21 September amounted to $ 52.30 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
