Secondary Bond market yields consolidate ahead of Rs. 60 b auction

Friday, 26 June 2026 04:36 - - {{hitsCtrl.values.hits}}

By Wealth Trust Securities

The secondary Bond market yesterday saw rates hold broadly steady while activity was seen tapering off during the latter part of the day as market participants adopted a wait-and-see approach ahead of the upcoming Treasury Bond auction.

The 15.03.28 and 01.05.28 maturities traded at the rates of 10.60% to 10.6225% and 10.63% respectively. The 15.12.29 maturity traded at the rate of 10.95%. The 01.08.30 maturity traded within the range of 11.22%-11.20%. The 15.01.33 maturity traded at 11.60%. The 15.08.36 maturity traded at the rates of 12.01% to 11.98%.

The Treasury Bond auctions due to be held today (26) have a total offered amount of Rs. 60 billion across two available maturities.

The auction will be comprised of: Rs. 45 billion from a 15 October 2030 maturity bearing a coupon rate of 11%; Rs. 15 billion from a 15 March 2035 maturity bearing a coupon rate of 11.50%. The settlement will be held on 1 July 2026.

For reference, the immediately previous round of Treasury Bond auctions held on the 11June delivered mixed results, while the auction failed to raise the total Rs. 150 billion across both phases, and seeing all bids for the longest tenor of 2037 rejected.

Maturity-wise results:

15.05.30: Issued at a weighted average yield of 11.65%
15.12.32: Issued at 12.69%.
01.07.37: All bids were rejected

In the money market, the net liquidity surplus was recorded at Rs. 65.36 billion yesterday. An amount of Rs. 80.82 billion was deposited at Central Bank’s SDFR (Standing Deposit Facility Rate) of 8.25% as against an amount of Rs. 15.47 billion withdrawn from the Central Bank’s SLFR (Standing Facility Rate) of 9.25%.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 9.24% respectively.

Forex market

The USD/LKR rate on spot contracts was seen closing at the rate of LKR. 337.20/337.40, appreciating from the previous day’s close of LKR. 337.00/337.75.

The total USD/LKR traded volume for 24 June was $ 102.95 million.

(References: Public Debt Management Office - Ministry of Finance, Central Bank of Sri Lanka, Bloomberg E-Bond Trading Platform, Money Broking Companies)