Sri Lanka rupee ends firmer, bond yields ease
Apr 17, 2019 17:09 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's rupee closed firmer at 174.45/60 to the US dollar in the spot market on Wednesday after trading weaker at 174.65/85 in the morning, while bond yields eased, dealers said.
The rupee had closed at 174.60/70 to the US dollar in the spot market on Tuesday.
Liquidity in the overnight market improved by 10 billion rupees to a 6.5 billion rupee deficit.
Banks borrowed less from the window after the end of the holiday season, when there had been heavy cash drawdowns. Private credit has also slowed down.
The Central Bank injected 2.59 billion rupees in overnight money at 8.52 percent, and 9.8 billion rupees in 7-day money at 8.55 percent.
The bond market was active, with yields falling due to the weekly bill auction, dealers said.
Yields at a bill auction on Tuesday fell 8 basis points for 12-month bills.
Twelve-month bills closed at 9.70/80 percent on Wednesday, down from 9.81/83 percent at Tuesday's close.
A bond maturing on 15.12.2021 ended at 10.17/23 percent, easing from 10.20/30 percent.
A bond maturing on 15.03.2022 closed at 10.40/44 percent, down from 10.45/50 percent.
A bond maturing on 15.03.2024 was the most liquid, and closed at 10.70/75 percent, down from 10.78/85 percent.
A bond maturing on 15.06.2027 closed at 11.03/08 percent, easing from 11.05/15 percent at Tuesday's close.
A bond maturing on 01.05.2029 closed at 11.10/15 percent, falling from 11.17/23 percent. (Colombo/Apr17/2019-SB)