Thursday Apr 30, 2026
Thursday Apr 30, 2026
Thursday, 30 April 2026 00:04 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury Bill auction conducted yesterday, the shorter 91-day tenor attracted strong demand and was issued at a weighted average yield rate of 8.20% - a drop of seven basis points compared to the previous week.
This marked the first instance in seven weeks where the rate on at least one tenor marked a decrease. This drop in rates was despite the 91-day tenor raising more than its respective offered amount. The 182-day Bill increased by marginally by two basis point to 8.25% and the 364-day Bill saw its weighted average remain unchanged at 8.52%, both tenors raised less than their respective offered amounts.
The auction was undersubscribed, raising Rs. 126.90 billion or 90.64% at the first phase in competitive bidding. The bid-to-cover ratio stood at 2.18 times.
The Phase II subscription on the 182-day and 364-day tenors is now open until 3.00 pm of business day prior to settlement date (i.e., 30.04.2026) at the WAYRs determined for the said ISINs at the auction.
Secondary market Bond yields closed the day broadly steady across majority of the yield curve, extending the consolidation phase amidst mixed geopolitical developments.
Market activity remained subdued as external factors stemming from the Middle East conflict continued to weigh on sentiment and market participants continued to prefer a wait-and-see stance in the absence of clear directional triggers. However, transaction volumes were seen at healthy levels due to several block transactions as absorptive buying at the elevated levels kept a cap on rates, spurred by the T-Bill auction result.
In the secondary Bond market, 01.06.26 maturity saw rates drop down the range of 8.30% to 8.15% and the 01.08.26 maturity traded at the rate of 8.35%. The 15.12.28 maturity saw its rate drop down the range of 9.82%-9.80%. The 15.10.29 maturity traded at the rate of 10.00%. The 15.12.32 maturity traded at the rate of 10.85%. The 01.06.33 and the 01.11.33 maturities traded at the rates of 11.00%. The 15.06.34 maturity traded at the rate of 11.17%.
The total secondary market Treasury Bond/Bill transacted volume for 28 April was Rs. 6.63 billion.
In the money market, the net liquidity surplus recorded at Rs. 248.48 billion yesterday, increasing for the 8th consecutive day. As an amount of Rs. 190.58 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% while an amount of Rs. 2.10 billion was withdrawn from the Central Bank’s SLFR (Standing Lending Facility Rate) of 8.25%. This prompted the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka to continue to drain out an amount of Rs. 60 billion by way of overnight Repo auction at a weighted average rate of 7.70%
The weighted average rates on overnight call money and Repos remained mostly unchanged at 7.72% and 7.79% respectively
Forex market
In the forex market, the rupee weakened with the spot USD/LKR closing at Rs. 319.75/320.50 against the previous day’s close of Rs. 319.00/320.00.
The total USD/LKR traded volume for 28 April was $ 48.25 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
