Sri Lanka bond yields steady, rupee stronger
ECONOMYNEXT – Sri Lanka’s rupee was quoted at 154.85/95 to the US dollar in morning trade, around the same level as yesterday’s close, and bond yields were also flat, ahead of a bill auction, dealers said.
The rupee strengthened on Monday to close at around 154.80/95 after opening at 155.15/20 to the US dollar.
The central bank, domestic operations department has not printed money in bill markets to put pressure on the rupee so far, and bank credit is also slower.
In bond markets bond yields were around the same levels as Monday dealers said ahead of a bill auction today.
Dealers said 12-month bills which moved up to 9.40 percent levels are becoming attractive to investors who earlier did not buy them and money will start flowing into bill markets if the central bank does not print money.
Bills were earlier mostly bought by banks for liquidity requirements.
A 3-year bond maturing on 01.03.2021 was quoted a 9.85/95 percent in mid-morning trade around the same level as yesterday.
A 01.08.2026 bond was quoted at 10.30/40 percent
A 01.08.2025 bond auctioned yesterday was also quoted around 10.30/40
A 15.05.2030 bond was quoted around 10.40/50 percent. (Colombo/Feb27/2018)