Friday Jul 03, 2026
Friday Jul 03, 2026
Thursday, 2 July 2026 04:24 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury Bill auction held yesterday, the weighted average yields increased across all maturities for a second consecutive week. The sharpest increase was witnessed on the shorter tenors, with the 91-day Bill and 182-day Bill increasing by 9 basis points each to 10.23% and 10.30% respectively. In contrast, the 364-day Bill edged up by only 3 basis points to 10.20%, maintaining the recent front-end bias in the re-pricing of the Bill yield curve.
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 less than their respective offered amounts. Total bids received amounted to 1.66 times the offered volume.
The Phase II subscription for 10.00% of the offered amount is now open only on the 182-day and 364-day maturities until 3.00 pm of business day prior to settlement date (i.e., 02.07.2026) at the WAYRs determined for the said ISINs at the auction. Given below are the details of the auction.
The secondary Bond market yesterday rallied on the back of strong demand from large-ticket buyers, with sustained bid-side interest driving yields lower. Buying was concentrated mainly on the 15.10.30 and 15.03.35 maturities. The positive momentum subsequently spilled over to the rest of the yield curve, albeit to a lesser extent. Activity and transaction volumes remained robust, with several sizeable block trades executed.
The 15.10.30 maturity traded down the range of 11.45%-11.37% and the 15.03.35 maturity down the range of 11.85%-11.80%. The 15.09.29 and 15.10.29 maturities were seen trading at the rates of 10.95% and 11.00% respectively. The 01.03.30 and 15.05.30 maturities traded at the rates of 11.15% and 11.25% respectively. The 15.12.32 maturity traded down the range of 11.65-11.63% and the 01.11.33 maturity traded at the rate of 11.70%.
In the money market, the net liquidity surplus was recorded at Rs. 89.83 billion yesterday. An amount of Rs. 99.43 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 9.60 billion withdrawn from the Central Bank’s SLFR (Standing Facility Rate) of 9.25%.
The weighted average rates on overnight call money and Repos were recorded at 9.23% and 9.25% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at the rate of LKR. 336.20/336.40 yesterday, as against its previous days close of LKR. 336.00/336.25.
The total USD/LKR traded volume for 30th June was $ 98.45 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
