Sri Lanka bond yields lower after Coronavirus rate cut, Friday injection

ECONOMYNEXT – Sri Lanka’s bond yields were marginally slightly down on Tuesday, dealers said after the central bank cut rates by 25 basis points Monday in an emergency following moves by floating rate central banks, after making 40 billion rupees cash injection Friday.

Sri Lanka’s stock market is closed.

The government has given three days as holiday for non-essential state agencies and companies as part of a battle against the spread of Coronavirus, as infections continued to rise. Banks are required to work

The rupee was not quoted in early trade, dealers said. A one week forward was quoted around 185.25 to the greenback late morning.

Sri Lanka’s rupee ended weaker at 183.85/184.05 to the US dollar on Friday down from 182.90/183.30 to the US dollar.

Sri Lanka had also transferred 24 billion in central bank profits earlier, on top of the 40 billion rupee injection Friday. Banks deposited 74 billion rupees in the excess liquidity Friday.

A reserve ratio cut of 100 basis points may add another 50 billion rupees in excess liquidity, unless the Friday injection is withdrawn.

A 12-month Treasury bill was quoted 8.30/40 percent after a 25 basis point rate, down from 8.40/50 on Friday.

A bond maturing on 15.12.2021 was quoted at 8.80/9.00 percent down from 8.85/15 percent on Friday,

A newly auctioned 2-year bond maturing on 01.10.2022 was quoted at 9.17/25 percent down from 9.35/42 percent.

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A bond maturing on 01.09.2023 was quoted at 9.40/50 percent down from 9.55/75 percent.

A bond maturing on 15.09.2024 was quoted at 9.75/80 down from 9.90/10.00 percent on Friday.

A bond maturing on 15.10.2027 was quoted at 09.85/95 percent down from 10.05/10.15 percent.

A bond maturing on 15.05.2030 which ast closed at 10.00/30 percent Friday was not quoted in early trade.

A bond maturing on 15.09.2034 was not quoted. It closed at 10.00/40 percent Friday. (Colombo/ Mar17/2020)

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