Sri Lanka rupee opens weaker, bond yields rise
Mar 13, 2019 10:18 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's rupee opened weaker at 178.95/05 to the US dollar on Wednesday while bond yields rose in an active market ahead of a bill auction, dealers said.
The rupee closed at 178.82/86 to the US dollar on Tuesday.
The government managed to pass the second reading of the budget in parliament on Tuesday evening, despite lacking a clear majority, nipping some uncertainty, dealers said.
A bills auction will be held later today.
The state debt department is offering 24 billion rupees at the auction, split into 3 billion rupees of 3-month maturities, 5 billion rupees of 6-month bills and 16 billion rupees of 12-month bills.
The government had last accepted 3-month bills five weeks ago, and 6-month bills three weeks ago.
Average weighted yield rates had fallen in the primary market at the last two auctions, with 12-month bills going for 10.64 percent last week.
Twelve month bills were quoted around 10.45/55 percent in the secondary market on Wednesday morning, unchanged from Tuesday.
Bond yields have been rising since the government floated a sovereign bond last Thursday.
Dealers said the bond market was active and yields were rising ahead of the auction.
A bond maturing on 01.08.2021 was quoted at 10.75/85 percent, up from 10.65/75 percent at Tuesday's close.
A bond maturing on 15.07.2023 was quoted at 10.90/00 percent on Wednesday, unchanged from the previous close.
The newly issued 5-year bond maturing on 15.03.2024 was the most traded on Wednesday morning, quoted at 11.07/10 percent, up slightly from Tuesday's close of 11.05/09 percent.
A bond maturing on 01.08.2026 was quoted at 11.10/25 percent today, wider from Tuesday's close of 11.15/20 percent.
A bond maturing on 15.06.2027, was quoted at 11.15/30 percent, easing from 11.20/30 percent at Tuesday's close.
A bond maturing on 01.09.2028, was quoted at 11.30/40 percent, flat from yesterday.
The newly issued bond maturing on 01.05.2029 was quoted at 11.42/47 percent on Wednesday, unchanged from the previous close.
At the Colombo Stock Exchange, the All Share Price Index was up 18.25 points to 5,665.03 in the first hour of trading on Wednesday, after falling sharply over the past three days, leading to a five and a half year low.
The more liquid S&P SL20 Index was up 7.10 points at 2,802.98.
Market turnover was 33.1 million rupees.
Trading on John Keells Hotels accounted for 70 percent of turnover, with the firm's share trading 20 cents higher at 7.70 rupees. (Colombo/Mar13/2019-SB)