Sri Lanka bond yields fall after bill auction
Wednesday June 26, 2019 17:49
ECONOMYNEXT- Sri Lanka’s rupee closed weak at 176.50/65 rupees against the US dollar in the spot market on Wednesday while bond yields plunged following a bill auction and ahead of a bond sale, dealers said.
The rupee closed at 176.40/55 against the greenback on Tuesday.
Liquidity in the overnight money market was 49.59 billion rupees.
The Central Bank mopped up 29.80 billion rupees in an overnight repo auction at 7.73 percent.
Another 10 billion rupees was drained through a term repo auction, amidst 17 billion rupees in maturities.
In the secondary market, bond yields eased with buying before a 16.5 billion rupee Treasury bill auction, following which rates plunged.
The 12-month yield in the auction fell 16 basis points to 8.70 percent from a month earlier, while 6-month yields fell 11 basis points to 8.49 percent and 3-month yield fell 14 basis points to 8.24 percent, the state debt office said.
A 125 billion rupee bond auction will be held on Thursday, issuing 5-year and 16-year maturities.
On Monday the government raised 2 billion rupees through an international sovereign bond.
A bond maturing on 15.10.2021 closed at 9.20/25 percent on Wednesday, easing from 9.33/39 percent at Tuesday’s close.
A bond maturing on 15.12.2021 closed at 9.20/25 percent, down from 9.40/45 percent.
A bond maturing on 15.03.2023 closed at 9.70/80 percent, easing from 9.82/88 percent.
A bond maturing on 15.03.2024 closed at 9.85/9.95 percent, easing from 9.97/10.01 percent.
A bond maturing on 01.08.2026 closed at 10.10/15 percent, down from 10.20/24 percent.
A bond maturing on 15.01.2027 closed at 10.15/25 percent, easing from 10.26/33 percent.
A 10-year bond maturing on 01.05.2029 closed at 10.35/45 percent, falling from 10.45/52 percent.
(Colombo, 26 June, 2019)