Sri Lanka rupee opens wider, bond yields rise after Easter bombings
Apr 23, 2019 10:16 AM GMT+0530 | 0 Comment(s)
ECONOMYNEXT- Sri Lanka's rupee opened wider at 174.40/90 to the US dollar in the spot market on Tuesday, while bond yields rose and were wider, reflecting uncertainty in markets after the Easter Sunday bombings, dealers said.
The rupee had closed at Rs. 174.50/70 to the US dollar in the spot market on Monday.
The rupee was trading around 174 50/70 to the US dollar mid-morning, with actual transactions happening at around 174.50 and 174.60, dealers said.
In overnight money markets, there was 32.25 billion rupees in excess liquidity on Monday, up from 14.29 billion rupees on Thursday.
Banks deposited 58.07 billion rupees through the window at 8 percent, and borrowed 12.90 billion rupees at 9 percent.
The central bank injected 4.43 billion rupees in overnight money at 8.54 percent and 10 billion rupees in 7-day money at 8.54 percent.
In the government bonds market, yields continued to gain and some maturities were quoted wider on selling pressure, dealers said.
Prime Minister Ranil Wickremesinghe had said that there would be outflows from the government bond market, after blasts rocked Sri Lanka on Sunday.
Twelve month bills were quoted at 9.90/10 percent on Tuesday, up from 9.70/.00 percent at Monday's close.
A bond maturing on 15.03.2022 was quoted at 10.50/70 percent, stable from 10.50/65 percent.
A 5-year bond maturing on 15.03.2024 was the most liquid maturity, and was quoted at 10.95/00 percent, up from 10.90/00 percent.
A bond maturing on 01.08.2026 was quoted at 11.10/20 percent, up from 10.95/20 percent at the previous close.
A 10-year bond maturing on 01.05.2029 was quoted at 11.25/35 percent, up from 11.20/35 percent. (Colombo/Apr23/2019)