Sri Lanka rupee weakened against the US dollar in the spot market on Wednesday, while government bond yields edged higher across several maturities as investors awaited the latest Treasury bill auction.
Sri Lanka rupee slips against the US dollar ahead of Treasury bill auction
The Sri Lanka rupee was quoted at 335.50/90 per US dollar in the spot market, compared with 334.75/85 recorded on the previous trading day, according to market dealers. The movement came alongside modest gains in Sri Lanka bond yields, reflecting cautious sentiment in the government securities market.
In the telegraphic transfer (TT) market, the rupee was quoted at Rs. 334.4884 buying and Rs. 339.50 selling against the US dollar. The euro was quoted at Rs. 374.4884 selling and Rs. 388.4054 buying, while the British pound traded at Rs. 440.2500 buying and Rs. 454.2956 selling.
Government securities also recorded slightly higher yields across key maturities.
The Treasury bond maturing on 15 December 2029 was quoted at 11.00–11.08 percent, compared with 10.95–11.05 percent during the previous session.
The bond maturing on 15 March 2030 traded at 11.10–11.15 percent, while the 1 August 2030 maturity was quoted at 11.25–11.35 percent, marginally higher than the previous day’s 11.25–11.30 percent.
Similarly, the Treasury bond maturing on 15 October 2030 increased to 11.35–11.40 percent, compared with 11.28–11.30 percent previously.
Longer-dated securities also recorded slight upward movements. The 15 December 2032 bond traded at 11.60–11.65 percent, up from 11.57–11.65 percent, while the 1 November 2033 maturity was quoted at 11.65–11.75 percent, compared with 11.60–11.70 percent during the previous trading session.
The rise in Sri Lanka bond yields suggests investors continue to monitor liquidity conditions, market expectations, and demand for government securities as the domestic debt market remains active.
Attention is also focused on the upcoming Treasury bill auction, where the Government plans to issue Rs. 100 billion worth of Treasury bills on 8 July. The auction is expected to provide a fresh indication of investor appetite for short-term government securities and prevailing market interest rates.
Treasury bill auctions play a key role in government financing while serving as an important benchmark for money market rates. Market participants often assess auction outcomes to gauge liquidity conditions and broader investor sentiment within the fixed-income market.
Meanwhile, movements in the Sri Lanka rupee continue to be closely watched by businesses, importers, exporters, and financial market participants as exchange rate fluctuations influence trade costs, foreign currency transactions, and broader economic activity.
The performance of both the currency and government bond market will remain under scrutiny in the coming days as investors evaluate the Treasury bill auction results and monitor broader macroeconomic developments affecting Sri Lanka’s financial markets.