Sri Lanka rupee ends steady, gilt yields ease
Jun 20, 2019 17:50 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's rupee closed flat at 176.70/80 percent against the US dollar in the spot market on Thursday while bond yields eased, dealers said.
The rupee closed at 176.70/75 against the greenback on Wednesday.
Liquidity in the overnight money market was stable at 24.7 billion rupees.
The central bank mopped up 8 billion rupees in an overnight repo auction at 7.75 percent and 10 billion rupees in a 6-day term repo auction at 7.8 percent.
Dealers said that there was some buying interest in the secondary bond market, as participants are expecting fund inflows to emerging markets such as Sri Lanka with the US Fed taking a dovish stance.
The anticipation of a 1.5-2 billion US dollar international sovereign bond (ISB) issue was also influencing bond investors, dealers said.
Sri Lanka's cabinet on Tuesday gave the nod to raise additional debt, and parliamentary approval is now required before the state debt office goes ahead with the ISB.
Bond yields eased, with the little activity in the market centred on the 2021 maturities, dealers said.
A bond maturing on 15.10.2021 closed at 9.58/63 percent, falling from 9.60/65 percent at Wednesday's close.
A bond maturing on 15.12.2021 closed at 9.60/65 percent, easing from 9.63/68 percent.
A bond maturing on 15.03.2023 closed at 10.00/10.05 percent, stable from 10.00/10.03 percent.
A bond maturing on 15.03.2024 closed at flat 10.15/20 percent.
A bond maturing on 01.08.2026 closed at 10.35/45 percent, down from 10.40/43 percent.
A bond maturing on 15.01.2027 ended 10.48/52 percent, easing from 10.50/52 percent.
A 10-year bond maturing on 01.05.2029 ended 10.55/65 percent, down from 10.60/66 percent. (COLOMBO, 20 June, 2019)