Sri Lanka bond yields fall on US$1.1 RBI swap report
ECONOMYNEXT – Sri Lanka’s bond yields dropped Thursday on news that foreign reserves would be strengthened by a 1.1 billion US dollar swap with the Reserve Bank of India, dealers said.
The proceeds of the bond would reach Sri Lanka later in the day, boosting Sri Lanka’s foreign reserves, Deputy Governor Nandalal Weerasinghe said. A central bank swap is a monetary policy neutral transaction.
A 5-year bond (01.05.2020) which opened at 9.70/90 percent, dropped as low as 9.50 percent after the news before moving up to 9.50/60 percent.
A 6-year bond (01.08.2021) was actively traded, opening at 9.85/90 falling to 9.70 percent and moving back up to 9.75/85.
An 8-year bond (01.09.2023) opened at 10.18/205 percent dropped to 10.00 percent and was later quoted at 10.05/10 percent.
A 10-year bond (01.08.2025) opened at 10.45/60 percent, dropped to 10.35 percent was quoted later at 10.45/60 percent.
An 11-year bond which opened at 10.55/70 dropped to 10.45/55 levels and was later quoted at 10.50/60.
30-year bond (01.03.2045) was unchanged at 10.50/11.50 percent.
A 3-year bond (01.06.2018) was quoted wide around 8.60/90 percent around the same levels as the morning. A 4-year bond (01.07.2019 was quoted at 9.10/30 percent. (Colombo/Sept03/2015)