ECONOMYNEXT – Sri Lanka’s bond yields in the secondary market are up while the rupee remains inactive in the forex market on Tuesday amid a spike in COVID-19 infections and deaths were reported since the end of July, market participants said.
In Sri Lanka’s forex market, interbanks 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 10.
The buying rate for telegraphic transfers was 198.1983 and the selling rate was at 202.8977 Tuesday from 197.8023/202.8977 on Monday.
In bond markets, short tenor gilt yields edged up while the long tenors were illiquid.
Sri Lanka’s debt office is also issuing 30.5 billion rupees bills in an auction to be held on Wednesday.
A 2-year bond maturing on 15.12.2022 closed at 5.65/75 per cent on Tuesday, steady from 5.65/72 per cent on Monday.
A bond maturing on 15.11.2023 closed at 6.30/75 per cent on Tuesday, up from 6.27/30 per cent on Monday.
A bond maturing on 1.12.2024 closed at 6.90/95 per cent on Tuesday, up from 6.88/93 per cent on Monday.
A bond maturing on 01.02.2026 closed at 7.40/55 per cent on Tuesday, steady from 7.40/50 per cent on Monday.
A bond maturing on 15.08.2027 closed at 7.60/90 per cent on Tuesday, up from 7.55/85 per cent on Monday.