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Wednesday October 20th, 2021
Bonds & Forex

Sri Lanka bond markets inactive ahead of auction, policy meeting

ECONOMYNEXT – Sri Lanka bond markets were inactive ahead of 100 billion rupee auction Tuesday dealers said as market participants also awaited a central bank policy decision on October 14.

Commercial Banks are quoted rates of around 196/203 for telegraphic transfers. However importers are waiting on priority lists to get dollars amid tight rationing.

The debt office has announced a 100 billion rupee auction of 2023, 2027 and 2032 bonds.

On Monday a 15.12.2023 bond traded at 8.35 percent dealers said.

There have been no recent trades of 15.01.2027 bonds.

On September 28, 2030 bonds were sold around 10.23 percent.

Sri Lanka’s bond markets are were progressively crippled over 2020 and 2021 with auction yields controlled and unsold bonds were bought by the central bank, triggering forex shortages and balance of payments deficits.

At the last bill auction 3-month bills were sold at 7.15 percent and there were secondary market trading. The 115 basis points gap could absorb possible rate hike. (Colombo/Oct10/2021)

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