Sri Lanka bond yields, rupee steady after Easter terror
Apr 23, 2019 19:47 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's rupee closed stable at 174.50/90 to the US dollar in the spot market on Tuesday, while bond yields were steady with buying from state institutions amid a state of emergency , dealers said.
The rupee had closed at 174.50/70 to the US dollar in the spot market on Monday.
In overnight money markets, there was 34.37 billion rupees in excess liquidity on Tuesday, up from 32.25 billion rupees on Monday.
In the bond market, yields were stable on buying from state-controlled institutions such as as the Employees' Provident Fund and National Savings Bank, dealers said.
Yields had risen by as much as 20 basis points on some maturities on Monday after the Easter Sunday bombings on selling pressure, which Prime Minister Ranil Wickremesinghe had predicted.
Pushing down interest rates has been a key objective of the Central Bank in April to spur private credit and economic growth, as retail lending rates were rising even when bond yields had been falling.
Twelve-month bills closed at 9.95/15 percent on Tuesday, up from 9.70/00 percent at Monday's close.
A bond maturing on 01.08.2021 was the one of the most active, closing at 10.35/45 percent, unchanged from the previous close.
A 5-year bond maturing on 15.03.2024 closed at 10.90/00 percent, flat from Monday.
A bond maturing on 01.08.2026 closed at 11.00/15 percent, up from 10.95/20 percent at the previous close.
A bond maturing on 15.01.2027 closed at 11.15/20 percent, stable from 11.15/30 percent at Monday's close.
A 10-year bond maturing on 01.05.2029 closed at 11.20/30 percent, stable from the previous close of 11.20/35 percent. (Colombo/Apr23/2019-SB)