Sri Lanka rupee closes weaker, bond yields fall
May 21, 2019 17:29 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's rupee ended weaker at 176.30/40 to the US dollar on Tuesday, while bond yields fell, dealers said.
The rupee closed at 175.90/00 to the greenback on Friday. Monday was a market holiday.
Overnight money market liquidity fell to 32.25 billion rupees on Tuesday, from 38.20 billion rupees on Friday.
The central bank mopped up 15 billion rupees with an overnight repo auction at 8.51 percent, while 13 billion rupees were mopped up at 8.56 percent through 3-day term repos and 9.4 billion rupees at 8.60 percent through a 7-day auction.
Bond yields eased in a somewhat active market, dealers said.
"Yields came off on the morning session and slightly adjusted towards the end but still down," a dealer said.
Central Bank Governor Indrajit Coomaraswamy's statement in Singapore that policy rates may be cut end-May led to buying in the morning session, another dealer said.
Yields have also been falling as banks, hit by bad loans, have been buying gilts instead of giving loans to customers with excess liquidity in money markets.
A bond maturing on 15.12.2021 closed at 9.55/65 percent on Tuesday, falling from 9.65/75 percent at Friday's close.
A bond maturing on 15.03.2023 closed at 10.05/15 percent, down from 10.10/20 percent.
A bond maturing on 15.03.2024 ended at 10.10/15 percent, falling from 10.25/30 percent.
A bond maturing on 01.08.2026 closed at 10.35/40 percent, falling from 10.50/57 percent.
A bond maturing on 15.01.2027 closed at 10.40/45 percent on Tuesday, down from Friday's 10.58/63 percent.
A 10-year bond maturing on 01.05.2029 ended at 10.60/70 percent, falling from 10.70/75 percent. (Colombo/May21/2019)