ECONOMYNEXT – Sri Lanka’s Treasury bond rates went up on Thursday on moderate trade, dealer said after the central bank kept policy rates unchanged in a monetary policy decision.
The market was earlier expecting some sort of easing, dealers said though policy rates are about half the market rates.
Central Bank Governor Nandalal Weerasinghe said he hoped market rates would come down on its own, but if not administrative controls would be imposed to push rates down.
A bond maturing on 15.01.2028 ended at 30.60/31.00 percent on Thursday, up from 30.50/80 percent on Wednesday.
A bond maturing on 01.07.2032 closed at 29.25/75 percent on Thursday, up from 28.00/60 percent.
A bond maturing on 01.07.2025 closed at 31.00/30 percent up from 30.95/31.10 percent from the last close.
The three-month T-bills closed at 32.95/33.00 percent up from the previous close of 32.90/33.10 percent.
In the weekly analysis report issued by the Fitch ratings said, in the secondary market buying interest was largely witnessed during the week possibly due to the improvement in banking system liquidity and speculation on a policy rate easing.
The Central Bank’s guidance peg for interbank transactions remained unchanged at 363.50 rupees against the US dollar.
Commercial banks offered dollars for telegraphic transfers between 372.00 and 372.10 for small transactions, data showed.
Buying rates are between 362.00 – 362.10 rupees. (Colombo/Nov 24/2022)