ECONOMYNEXT – Sri Lanka bond market yields slightly eased about 5 basis points on Tuesday (30) however the overall market activity was limited, a dealer said.
Sri Lanka’s debt office is offering 60 billion rupees to be sold in a bills auction to be held on Wednesday (01).
The bills will be split in to 18 billion maturing in 3-months, 20 billion maturing in 6-months and 22 billion maturing in 12-months.
On Monday Sri Lanka offered and sold 60 billion rupees in bonds.
FirstCapital said the secondary bond market yield curve remained broadly unchanged while overall market witnessed ultra-thin volumes with limited activities.
Buying interest centred on 2023 maturities.
A dealer told ECONOMYNEXT that the maturities came off almost 5 basis points since previous day’s close.
Bonds maturing on 15.03.2024 closed at 9.15/20 percent on Tuesday, steady from 9.15/22 percent on Monday.
A bond maturing on 01.12.2024 closed at 9.25/35 on Tuesday, down from 9.30/40 percent at Monday’s close.
The newly auctioned bond maturing on 15.03.2025 closed at 9.65/70 percent on Tuesday, down from 9.70/72 percent at the previous close.
A bond maturing on 15.01.2026 closed at 10.20/30 percent, down from 10.30/40 percent on Monday.
A bond maturing on 15.01.2027 closed at 10.70/80 percent on Tuesday, down from 10.80/90 percent on Monday.
A bond maturing on 15.05.30 closed at flat 11.55/65 percent on Tuesday from the previous day’s close.
A bond maturing on 15.03.2031 closed at 11.80/87 percent on Tuesday, up from 11.75/85 percent at Monday’s close.
Sri Lanka’s central bank on Thursday (25) kept rates at the current levels maintaining the Standing Deposit Facility Rate (SDFR) at 5.00 percent and the Standing Lending Facility Rate (SLFR) at 6.00 percent.
Sri Lanka’s official inflation index moved up above 8.0 per cent in October, the highest since 2017, after two years of money printing which began around September 2014.
Prices of various food staples have risen in the past few weeks.