ECONOMYNEXT- Sri Lanka's rupee opened weaker at 174.63/73 rupees to the US dollar on Wednesday morning, while bond yields continued to fall following a bond auction on Tuesday, dealers said.
The rupee closed at 174.45/60 to the US dollar in the spot market on Tuesday, gaining from 174.60/70 on Monday.
Dealers said there was activity in the bond market ahead of the weekly bills auction later on Wednesday.
The state debt office will sell 28 billion rupees in bills, in 3-month, 6-month and 12-month maturities.
After a bond auction held on Tuesday, yields on the secondary market fell.
The state debt office sold 15 billions rupees of a bond maturing on 15.03.2022 and 25 billion rupees of a bond maturing on 15.01.2027.
Dealers said yields eased in the secondary market, on continued buying seen post-auction on Tuesday.
Twelve-month bills were quoted at 10.15/25 percent on Tuesday, down from 10.20/30 percent at Tuesday's close.
A newly issued bond maturing on 15.03.2022 was quoted at 10.65/75 percent, wider from 10.68/70 percent.
A bond maturing on 15.07.2023 was quoted at 10.80/85 percent, down from 10.83/90 percent.
A 5-year bond maturing on 15.03.2024 was quoted at 10.90/94 percent, edging down from 10.92/95 percent.
A bond maturing on 01.08.2026 was quoted at 11.05/10 percent on Wednesday, stable compared to 11.05/15 percent.
New bond maturing on 15.01.2027 was quoted at 10.15/20 percent, flat from the previous close.
A bond maturing on 01.09.2028 was quoted at 11.25/35 percent, stable from 11.25/33 percent.
A bond maturing on 01.05.2029 was quoted at 11.32/36 percent, easing from 11.33/37 percent.
At the Colombo Stock Exchange, the All Share Price Index gained 14.61 points, reaching 5,593.04 in the first half hour of trading.
The more liquid S&P SL20 Index was up 18.80 points at 2,749.79.
Market turnover was low at 2.2 million rupees, with shares of 30 firms gaining and 4 falling.
LOLC Development Finance was contributing most to the market gain early morning, up 6.90 rupees to 38.50 rupees per share.
Melstacorp share was up 1 rupee to 37 rupees in intra-day trade.
Dialog Axiata was trading 10 cents higher at 9.30 rupees per share.
Lanka IOC was the most active stock, up 30 cents at 17.70 rupees per share. (Colombo/Apr03/2019-SB)