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Sri Lanka bond yields close flat, rupee stronger

ECONOMYNEXT – Sri Lanka bond yields closed flat, while spot markets only showed sporadic activity and stock markets were closed on Coronavirus holidays and the rupee closed stronger against the US dollar from Friday, dealers said.

Sri Lanka’s rupee closed stronger in the one week forward market around 189.90/190.00 to the US dollar, with offers at around 190 to the US dollar towards the end of trading, dealers said.

One weeks fell below 191 to the US dollar on Friday.

There was no activity in the spot market but there is hardly any premium between the one week, dealers said.

Sri Lanka’s dollar bonds are yielding high rates, with an October 2020 near maturity quoted steeply lower.

The government debt office is issuing 30 billion rupees of Treasury bills split into six billion 3-month bills, 10 billion in 6-month bills and 14 billion 12-month bills on an auction on Wednesday.

In the secondary government securities market, yields were flat in dull trading, dealers said.

Liquidity in the overnight money market was 58.58 billion rupees, up from 44.50 billion rupees on Monday.

Banks deposited 81.06 billion rupees in the central bank’s excess liquidity window.

Dealers also said that the 2024 maturities were more liquid.

A bond maturing on 15.12.2021 was not quoted.

A 2-year bond maturing on 01.10.2022 was quoted at 8.80/95 percent up from 8.75/90 percent.

A bond maturing on 01.09.2023 was quoted at 9.20/25 percent up from 8.05/15 percent.

A bond maturing on 15.09.2024 was quoted at 9.30/40 stable from Monday.

A bond maturing on 15.10.2027 was quoted at 9.55/70 percent unchanged from yesterday’s close.

A bond maturing on 15.05.2030 was not quoted in early trade.

A bond maturing on 15.09.2034 was not quoted. It closed at 10.00/40 percent in its last close. (Colombo/ Mar30/2020)

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