Tuesday Aug 25, 2026
Tuesday Aug 25, 2026
Tuesday, 25 August 2026 08:07 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The Treasury Bill weighted averages extended their slide at this week’s auction, marking a seventh consecutive week of declines as aggressive demand continued to drive yields lower across all three tenors.
The sharpest moves were seen at the short end, with the 91-day yield falling 16 basis points to 9.06%, while the 182-day bill also declined by 16 basis points to 9.44%. The 364-day bill eased by a further 2 basis points to 9.89%.
Demand remained firmly in the driver’s seat, with the Public Debt Management Office (PDMO) raising the full Rs. 120 billion offered and each tenor meeting its targeted allocation. Total bids amounted to 2.86 times the offer, highlighting the strength of investor appetite.
The Phase II subscription across all three maturities is now open until 3:00 p.m. today (25) at the Weighted Average Yield Rates (WAYRs) determined at the auction.
The secondary Bond market yesterday saw yields consolidate and hold broadly steady. Activity and transaction volumes were seen moderating.
The 01.05.28 and 01.09.28 traded at the rates of 10.10% and 10.20%. The 15.09.29 and 15.10.29 maturities traded lower at the rates of 10.35% and 10.45% respectively. The 15.12.32 traded at 11.30%, the 15.10.34 at 11.72% and the 15.08.36 within the range of 11.97%-12.00%.
This comes ahead of the Treasury Bond auctions due to be held today were announced. The round of auctions will have a total offered amount of Rs. 50 billion across two available maturities.
The auction will comprise of Rs. 30 billion from a 1 August 2030 Maturity bearing a coupon rate of 10% and Rs. 20 billion from a 15 March 2035 Maturity bearing a coupon rate of 11.50% The settlement for which will be held on 1 September 2026.
At the last round of Treasury Bond auctions conducted on 30 July, the PDMO raised the full Rs. 250 billion offered in the first phase, with all four available maturities meeting their respective allocations.
Weighted average yields were recorded as follows maturity-wise: 11.90% for the 01.02.2031, 12.42% for the 15.10.2034, 12.91% for the 15.08.2036, and 13.01% for the 01.07.2037.
Demand was strong, with total bids amounting to 2.43 times the accepted value—a notable outcome given the scale of the auction. A further Rs. 25 billion was raised through the direct issuance window.
In the money market, the net liquidity surplus was recorded at Rs. 123.21 billion. Rs. 90.68 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 0.27 billion drawn 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 mopped out Rs. 32.80 billion by way of an overnight repo auction at a weighted average yield of 8.75% as well as Rs. 30 billion through a 30-day term repo auction at the weighted average yield of 9.19%.
The weighted average yields on overnight call money and repos were recorded at 8.84% and 8.87% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 329.00/329.10 yesterday, with the Rupee appreciating further from Rs. 329.40/329.55 recorded on the previous day.
The total USD/LKR traded volume for 21 August amounted to $ 89 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
