Sri Lanka bond yields ease, stocks gain
Thursday April 4, 2019 17:12
ECONOMYNEXT- Sri Lanka’s rupee closed weaker at 174.70/85 to the US dollar in the spot market on Thursday, while bond yields fell, dealers said.
The rupee closed at 174.55/75 to the US dollar in the spot market on Tuesday.
Dealers said the market is split over whether the Central Bank will cut or hold benchmark policy rates on Tuesday, while some analysts expect a rate cut.
Bond yields fell across maturities on active trading.
Private credit growth was seen falling, and coupled with Central Bank liquidity injections, eased the liquidity pressure in overnight money markets.
Dealers said liquidity in overnight markets created buying pressure in the bond market.
Twelve month bills closed at 10.00/15 percent on Thursday, unchanged from Wednesday’s close.
A newly issued bond maturing on 15.03.2022 closed at 10.52/57 percent, down from 10.55/60 percent.
A bond maturing on 15.07.2023 closed at 10.70/78 percent, down from 10.78/85 percent.
A 5-year bond maturing on 15.03.2024 closed at 10.82/87 percent on Thursday, down from Wednesday’s close of 10.88/95 percent.
A bond maturing on 01.08.2026 closed at 10.92/00 percent, down from 11.02/10 percent.
A new bond maturing on 15.01.2027 closed at 11.02/07 percent, down from 11.10/15 percent.
A bond maturing on 01.09.2028 closed at 11.10/25 percent, down from 11.20/30 percent.
A bond maturing on 01.05.2029 ended at 11.20/25 percent, down from 11.25/32 percent.
(Colombo, April 5, 2019-SB)