Sri Lanka rupee ends firmer, bond yields ease
Jun 28, 2019 17:45 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - Sri Lanka's rupee closed strong at 176.40/45 rupees against the US dollar in the spot market on Friday while bond yields eased, dealers said.
The rupee closed at 176.50/70 against the greenback on Thursday.
Liquidity in the overnight money market was 34.73 billion rupees, down from 53.23 billion rupees a day earlier.
The Central Bank mopped up 15.7 billion rupees in an overnight repo auction at 7.74 percent and 3.2 billion rupees in a 7-day term repo auction at 7.75 percent.
Four billion rupees in central bank holdings of government securities were wound down.
In the secondary market, bond yields eased in an active market in the afternoon, after mixed trading in the morning session, dealers said.
There was a shift from fixed deposits to government securities on Friday as the central bank slapped more price controls on retail lending rates dealers said.
Foreign buying interest was witnessed in longer maturities.
A bond maturing on 15.10.2021 closed at 9.23/28 percent on Friday, up from 9.20/35 percent at Thursday's close.
A bond maturing on 15.03.2023 closed at 9.70/78 percent, down from 9.77/87 percent.
A bond maturing on 15.6.2024 bond closed at 9.87/90 percent, easing from 9.93/9.98 percent.
A bond maturing on 01.08.2026 closed at 10.10/15 percent, steady from 10.10/25 percent.
A bond maturing on 15.01.2027 ended at 10.15/19 percent, falling from 10.18/28 percent.
A 10-year bond maturing on 01.05.2029 closed at 10.30/35 percent, easing from 10.36/44 percent.
(COLOMBO, 28 June, 2019)