Thursday Nov 05, 2026
Thursday Nov 05, 2026
Thursday, 1 October 2026 00:05 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
The Treasury Bill weighted average yields continued on an upward trajectory and increased across the board for the third consecutive week at the weekly auction held yesterday.
Accordingly, the 91-day yield rose by 5 basis points to 9.25%, while the 182-day and 364-day yields increased by 4 basis points and 2 basis points to 9.41% and 9.95%, respectively.
The Public Debt Management Office (PDMO) successfully raised the full Rs. 80 billion offered. The 91-day and 182-day tenors recorded acceptances above its target allocation, while the 364-day tenor fell short of its target.
Total bids received amounted to 2.51 times the overall offer.
The Phase II subscription across all three maturities is now open until 3:00 p.m. today (1) at the Weighted Average Yield Rates (WAYRs) determined at the auction.
The secondary Bond market yesterday initially saw rates nosedive as the ‘no change’ outcome Monetary Policy announcement sparked a relief rally. However, this was short-lived as selling pressure pushed rates back resulting in a partial reversal. Accordingly yields exhibited a V-shaped trading pattern resulting in secondary bond market two-way quotes closing lower on key tenors and broadly steady on the rest of the yield curve.
The 01.08.30 maturity touched an intraday low of 11% before reversing to trade at a high of 11.17%, the 15.10.30 hit a low of 11.05% before moving back up to trade at 11.20%. The 01.02.31 traded down to a low of 11.10% before swinging back to a high of 11.20%. The 15.12.32 hit an intraday low of 11.60% before moving back up to 11.70%. The 15.01.33 and 01.11.33 traded at the rates of 11.80% to 11.75% and 11.85% respectively. The 15.06.34, 15.09.34 and 15.10.34 maturity traded at the rates of 11.90%, 11.95% and 12%-11.90%. The 15.03.35 maturity traded at the rate of 12.15%.
On the inflation front, headline inflation came in lighter than expected, as measured by the Colombo Consumer Price Index (CCPI) was recorded at 8% year-on-year in September 2026, the same print as in August the month prior, according to the Department of Census and Statistics. This was below both Bloomberg’s estimate of 8.40% and a Bloomberg poll consensus estimate of 8.30%.
In the money market, the net liquidity surplus stood at Rs. 158.66 billion. A total of Rs. 78.26 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 14.60 billion withdrawn 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. 60 billion by way of an overnight repo auction at a weighted average yield of 8.73%, Rs. 35 billion through a 7-day term repo auction at the weighted average yield of 8.75% and Rs. 20 billion through a 29-day term repo auction at the weighted average yield of 9.14%.
The weighted average yields on overnight call money and repos were 8.98% and 9.02% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at Rs. 330.65/330.75 yesterday, as against its previous days closing of Rs. 330.75/330/90. The total USD/LKR traded volume for 29 September amounted to $ 91.60 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
