Sri Lanka bond yields fall ahead of SRR cut
ECONOMYNEXT- Sri Lanka’s bond yields fell Friday after the Central Bank said it was cutting the statutory reserve ratio from March 01, to fill liquidity shortages generated from a defending a soft-peg with the US dollar over the past several months.
The spot US dollar was quoted at 179.40/55 rupees in mid-day trading, slightly higher from yesteday’s closing of 179.50/60 percent.
The rupee closed at 179.50/60 to the US dollar Thursday almost unchanged from Wednesday’s 179.50/60 to the dollar.
Bond yields fell after the Central Bank said it was cutting the statutory reserve ratio from 6.0 to 5.0 percent from March 01, releasing liquidity to the market.
A bond maturing on 01.08.2021 was quoted at 10.80/90 percent Friday down from Thursdays closing of 10.92/97 percent.
A bond maturing on 15.12.2023 quoted at 10.98/11.08 down from Thursday’s closing of 11.12/18 percent.
A 7-year bond maturing 01.08.2026 was quoted at 11.22/30 percent down from Thursday’s closing of 11.32/35 percent.
A bond maturing on 15.01.2027, quoted at 11.25/32 percent down from yesterday’s 11.37/45 percent.
A bond maturing on 01.09.2028 quoted at 11.30/45 percent down from yesterday’s closing of 11.42/50 percent. (Colombo/Feb22/2019-SB)