Secondary Bond Market Yields Open Fresh Week Steady; Activity Subdued

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Daily report for the 08th September 2025 – Courtesy Wealth Trust Securities Ltd

  • Secondary Bond Market Yields Open Fresh Week Steady; Activity Subdued
  • Rs 155 billion Treasury Bond Auction Announced
  • Rupee Virtually Unchanged

The secondary bond market started off the new trading week on a dull note, with activity and transaction volumes at subdued levels, similar to the week prior. Very limited trades were observed on relatively thin volumes. Yields were seen holding broadly steady. Market participants gravitated towards the sidelines, adopting a wait and see approach the ahead of the upcoming Treasury Bond auction due to be held on the 11th of September (this Thursday).

Accordingly, the 15.02.28 and 01.07.28 maturities were seen changing hands at the rate of 8.85% and 9.00%-9.01% respectively.

In addition, the details of the Treasury Bond auction, scheduled to be conducted on the 11th of September were announced. The round of auctions will have a total offered amount of Rs 155.00 billion across two available maturities.

The auction will be comprised of:

  1. Rs. 85.00 billion from a 01st July 2030 Maturity bearing a coupon rate of 09.75%
  2. Rs. 25.00 billion from a 01st October 2032 Maturity bearing a coupon rate of 09.00%
  3. Rs. 45.00 billion from a 15th June 2035 Maturity bearing a coupon rate of 10.70%

The settlement for which will be held on 15th September 2025.

In Secondary market bills, trades were observed on October 2025 maturities at the rate of 7.62%. In addition, March 2026 and May/June 2026 maturities at the rates of 7.94% and 8.01%-8.06%.

The total secondary market Treasury bond/bill transacted volume for 04th September was Rs. 2.10 billion.

In the money market, the net liquidity surplus was recorded at Rs. 155.89 billion.

The weighted average rates on call money and repo were registered at 7.86% and 7.87% respectively.

Forex Market

In the Forex market, the USD/LKR rate on spot contracts closed the day steady a Rs. 301.97/302.05 as against Rs. 301.97/302.02 the previous day.

The total USD/LKR traded volume for 04th September was US $ 70.20 million.

(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)