ECONOMYNEXT – Sri Lanka’s bond yields in the secondary market down slightly while the rupee remains inactive in the forex market on Friday, market participants said.
Sri Lanka government has decided not to impose a COVID-19 travel restriction although the infection cases and deaths rates are reported to be spiking and health expert warning that the next two weeks would be crucial.
Sri Lanka’s interbank forex markets are not allowed to deal above 200 to the US dollar and import customers are not allowed to be given dollars above 203 to the US dollar in curbs announced after money printing triggered forex shortages.
The central bank’s indicative spot rate was 199.9000 on August 06.
The buying rate for telegraphic transfers was 198.3183 and the selling rate was at 202.8977 on Friday, flat from Thursday.
In bond markets, short tenor gilt yields eased while the long tenors remained unchanged.
Some short-tenor yields were down.
A 2-year bond maturing on 15.12.2022 closed at 5.60/70 per cent on Friday, down from 5.65/70 on Thursday.
A bond maturing on 15.11.2023 closed flat at 6.27/30 per cent on Friday from Thursday.
A bond maturing on 1.12.2024 closed at 6.85/90 per cent on Friday, down from 6.86/90 percent on Thursday.
A bond maturing on 01.02.2026 closed at 7.35/50 per cent on Friday, down from 7.40/55 per cent.
A bond maturing on 15.08.2027 closed at 7.60/90 per cent on Friday, steady from 7.60/85 per cent on the last closing.