Friday Jul 10, 2026
Friday Jul 10, 2026
Thursday, 9 July 2026 06:29 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury Bill auction held yesterday, the weighted average yields held broadly steady, breaking a two-week streak of across-the-board increases prior. Accordingly, the rate on the 91-day tenor reduced by 02 basis points to 10.21%, the 182-day tenor remained unchanged at 10.30% and the 364-day tenor edged up marginally by 01 basis point to 10.21%.
The auction successfully raised the full Rs. 100 billion offered at the first phase of competitive bidding. However, the bulk of the quantity raised was from the 91-day tenor, which raised more than its offered amount, while the other two tenors raised the same or less than their respective offered amounts. Total bids received amounted to 2.30 times of the offered amount up from 1.66 times the week before.
The Phase II subscription across all three maturities is now open until 3:00 p.m. of business day prior to settlement date (i.e., 09.07.2026) at the WAYRs determined for the said ISINs at the auction. Given below are the details of the auction.
The secondary Bond market yesterday saw yields increase on the news of renewed geopolitical tensions in the Middle East and the corresponding increase in global oil prices. The re-escalation saw renewed military action, reinstated the US sanctions on Iranian oil exports, and increased concerns over passage through the Strait of Hormuz. Activity and transaction volumes were seen at moderate levels.
The 01.07.28 and 15.10.28 maturities traded at the rates of 10.70% each. The 01.08.30 and 15.10.30 maturities traded at the rates of 11.30% and 11.35%-11.37% respectively. The 01.11.33 maturity traded between the rates of 11.70%-11.73% and the 15.06.34 maturity at the rates of 11.80%-11.82%. The 15.03.35 also traded at the rate of 11.80%.
In the money market, the net liquidity surplus was recorded at Rs. 125.89 billion yesterday. An amount of Rs. 96.08 billion was deposited at Central Banks SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 0.19 billion withdrawn from the Central Banks SLFR (Standing Facility Rate) of 9.25%.
In addition, the Domestic Operations Department (DOD) of the Central Bank of Sri Lanka drained out an amount of Rs. 30 billion by way of overnight repo auction at a weighted average rate of 8.75%.
The weighted average rates on overnight call money and Repos were recorded at 9.15% and 9.16% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at the rate of LKR. 335.75/336.20 yesterday, as against its previous days close of Rs. 334.85/335.
The total USD/LKR traded volume for 7 July was $ 81.42 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
