Friday Jul 31, 2026
Friday Jul 31, 2026
Thursday, 30 July 2026 05:15 - - {{hitsCtrl.values.hits}}
By Wealth Trust Securities
At the weekly Treasury Bill auction held on Tuesday, the weighted average yields on the shorter tenors dropped for the third consecutive week. Accordingly, the yield on the 91-day tenor declined by nine basis points to 9.86% and the 182-day maturity dropped by three basis points to 10.21%. However, the 364-day maturity held steady at 10.20%.
The auction successfully raised the full Rs. 140 billion offered at the first phase of competitive bidding. Maturity-wise, the shorter tenors raised more than or equal to their respective amounts offered, while the one-year tenor raised less than the amount offered. The bids received exceeded the offered amount by 2.09 times.
The Phase II subscription across all three maturities is now open until 3 p.m. on (30.07.2026) at the WAYRs determined for the said ISINs at the auction (see table for details of the auction).
The secondary Bond market on Tuesday saw yields increase on selected tenors on the back of market positioning ahead of the upcoming Treasury Bond auction. Activity remained at moderate levels; however, transaction volumes were seen at robust levels due to the execution of block trades.
The 15.12.26 maturity traded within the range of 10.00%-10.05%. The 15.10.28 and 15.12.28 maturities were seen trading at the rates of 10.73%-10.77% and 10.75% respectively. The 01.08.30 and 15.01.33 maturities traded at the rates of 11.70%-11.77% and 12.25%-12.20% respectively.
This comes ahead of the Treasury Bond auctions due to be held today (30 July). The round of auctions will have a total offered amount of Rs. 250 billion across three available maturities.
The auction will be comprised of:
Rs. 90 billion from a 1 February 2031 maturity bearing a coupon rate of 11.60%; Rs. 80 billion from a 15 October 2034 maturity bearing a coupon rate of 11.70%; Rs. 30 billion from a 15 August 2036 maturity bearing a coupon rate of 10.85%; and Rs. 30 billion from a 1 July 2037 maturity bearing a coupon rate of 10.75%. The settlement will be held on 3 August 2026.
To recap: At the Treasury Bond auctions held previously on 13 July, the full offered amount of Rs. 150 billion was raised during Phase I of competitive bidding. The bids-received-to-accepted ratio stood at 2.42 times.
Maturity-wise results were as follows:
n 15.10.2030: Issued at a weighted average yield of 11.57%.
n 15.10.2034: A fresh maturity was issued at a weighted average yield of 12.04%
n 01.07.2037: Issued at a weighted average yield of 12.58%
Further to the Treasury Bond auction held on 13 July 2026, Rs. 15 billion was raised via the Direct Issuance Window at the respective weighted average yields determined at the auction, out of a total market subscription of Rs. 15.155 billion.
In the money market, the net liquidity surplus was recorded at Rs. 185.96 billion on Tuesday, hitting the highest level in around two-and-a-half months, or since 14 May. An amount of Rs. 105.96 billion was deposited at the Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25%.
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 rate of 8.72% as well as Rs. 20 billion by way of a three-day term Repo auction at the weighted average rate of 8.75%.
The weighted average rates on overnight Call money and Repos were recorded at 9.01% and 9.04% respectively.
Forex market
The USD/LKR rate on spot contracts was seen closing at the rate of Rs. 336.10/336.20 yesterday, appreciating from Rs. 336.20/336.30 recorded the day prior.
The total USD/LKR traded volume for 27 July amounted $ 102.75 million.
(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)
