Click here to view the article
Daily report for the 01st September 2025 – Courtesy Wealth Trust Securities Ltd
- Secondary Bond Market Yields Hold Steady; Activity Subdued
- Rupee Appreciates
The secondary bond market kicked off the new trading week on a quiet note, similar to the week prior, with activity and transaction volumes at subdued levels. Sparse trades were observed on thin volumes focused on selected maturities. Yields were seen holding broadly steady, as market participants gravitated towards the sidelines, adopting a wait and see approach amid the absence of strong directional cues. As a result, the market was in a holding pattern throughout the day.
Accordingly, the 01.05.27 maturity traded within the range of 8.59%-8.65%. The 15.06.29 and 15.09.29 traded at the rate of 9.48% each and the 15.10.29 maturity at the rate of 9.50%.
In Secondary market bills, trades were observed on January, February/March and April 2026 maturities at the rates of 7.85%, 7.94%-7.95% and 7.98% respectively. Meanwhile, May 2026 maturities were seen trading at the rates of 8.03%. The bills market was relatively active with sizeable block trades taking place.
The total secondary market Treasury bond/bill transacted volume for 29th August was Rs. 15.06 billion.
In the money market, the net liquidity surplus was recorded at Rs. 126.43 billion, deposited at the Central Banks SDFR (Standard Deposit Facility Rate) of 7.25%.
The weighted average rates on call money and repo were registered at 7.85% and 7.87% respectively.
Forex Market
In the Forex market, the USD/LKR rate on spot contracts closed the day appreciating to Rs. 301.97/302.07 as against Rs. 302.00/302.10 the previous day.
The total USD/LKR traded volume for 29th August was US $ 183.70 million.
(References: Central Bank of Sri Lanka, Bloomberg E-Bond trading platform, Money broking companies)