Thursday May 14, 2026
Thursday May 14, 2026
Thursday, 14 May 2026 00:04 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The weekly Treasury Bill auction conducted yesterday, was fully subscribed, raising the entire Rs. 80 billion on offer at the first phase in competitive bidding. The bid to offer ratio stood at 2.74 times.
Rates were seen declining across the board for the first time in 10 weeks. This reversed the upward trend observed in the recent past, with yields retreating from the highs touched during late April.
Accordingly, the weighted average yield rates on the 91-day tenor declined by 7 basis points to 8.13%, the 182-day tenor registered a drop of 1 basis point to 8.23%, and the 364-day tenor decreased by 3 basis points to 8.49%. This follows the optimistic outcome observed at the Treasury Bond auction conducted the day prior and the subsequent rally in the secondary bond market.
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., 14.05.2026) at the WAYRs determined for the said ISINs at the auction.
The secondary Bond market yesterday saw rates edging up slightly on the back of profit taking pressure from the rally observed the prior day.
External factors remained firmly in focus as the ongoing Middle Eastern tensions and elevated crude oil prices continued to weigh on market sentiment. However, rates were seen settling below previous highs, locking in some gains, as market optimism around potential positive developments coinciding with US president’s visit to China slated for next coming days.
Market activity was seen at subdued levels. However, transaction volumes were seen at healthy levels due to the execution of several block trades, as selling pressure was met with absorptive buying interest.
In the secondary Bond market, the 01.08.26 maturity traded at the rate of 8.15%. The 15.02.28 and 01.07.28 maturity traded at the rates of 9.65%-9.60% and 9.70%. The 01.08.30 maturity traded at the rate of 10.05%. The 15.06.34 traded up the range of 11.10% to 11.15%. The 15.06.35 maturity traded at the rate of 11.18%.
In the money market, the net liquidity surplus recorded at Rs. 255.68 billion yesterday. An amount of Rs. 191.24 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 7.25% as against an amount of Rs. 0.56 billion withdrawn from the Central Bank’s SLFR (Standing Facility Rate) of 8.25%. The Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out Rs. 65 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 were recorded at 7.78% and 7.83%, respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing the day at Rs. 324.00/325.50 as against the previous day’s closing level of Rs. 322.50/323.00.
The total USD/LKR traded volume for 12 May was $ 132.56 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
