Sri Lanka bond yields steady at auction

ECONOMYNEXT – Sri Lanka sold 39.2 billion rupees of bonds after offering 35 billion rupees of securities at auction, while the central bank injected 44 billion rupees of printed money to the market overnight.

The debt office sold 10 billion rupees of 3-year bonds to yield 11.62 percent, around the pre-auction rate of 11.50/60 percent after offering the same volume. On June 30 a close maturity of 01.05.2019 was sold at 11.58 percent.

10.64 billion rupees of 5-year bonds maturing on 01.03.2021 was sold to yield 11.89 percent after offering 9.0 billion rupees indicating that the rate may have fallen if the offered volume only was taken.

On June 20, the exact maturity was sold at 11.89 percent.

10.52 billion rupees of 6 year bonds maturing on 01.10.2022 was sold to yield 12.03 percent after offering 9.0 billion rupees.  On June 27, bond maturing on 01.10.2022 was auctioned for 12.03 percent.

8.05 billion rupees of 7 year bonds maturing on 01.09.2023 were sold to yield 12.18 percent around pre-auction levels.

However the bonds were sold as a total of 52 billion rupees in cash was injected to the market through the reverse repo window and cash auction, indicating large reserve outflows.

However the rupee gained in the forward market due to some dollars sales. (Colombo/July 08/2016)

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