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Wednesday July 6th, 2022

Sri Lanka bond yields up, forex markets not active amid fall

ECONOMYNEXT – Sri Lanka’s bond yields went up Monday while there were no active quotes in forex markets, dealers said, with the rupee under pressure from liquidity injections.

On Friday the rupee closed around closed around 191.50/192.25 in the one week forward market, though there were not active quotes in the spot market, dealers said.

There were sporadic rates around 191.75 to the US dollar and 190.00 to the US dollar in intra-day trade, on Friday.

Sri Lanka rupee had come under pressure from liquidity injections despite weak private credit, as large liquidity injections were made, despite global uncertainty and the country operating a highly unstable soft-peg.

The rupee had fallen from around 182 to the US dollar when monetary stability was last seen around February.

Sri Lanka’s stock markets are closed due to a Coronavirus holiday.

The government debt office is issuing 30 billion rupees of treasury bills split into six billion 3-month bills, 10 billion in 6-month bills and 14 billion 12-month bills on an auction on Wednesday.

A bond auction of up to 220 million dollars of Sri Lanka development bonds in the tenures of 7 months, 1 year 4 months, 3 years and 4 years and 10 months also on Wednesday, the debt office said.

In the secondary government securities market, yields went up in moderate trading, dealers said.
Dealers also said that the 2024 maturities were more liquid.

A bond maturing on 15.12.2021 was quoted at 8.00/8.30 percent down from 8.75/95 percent on Friday.

A 2-year bond maturing on 01.10.2022 was quoted at 8.75/85 percent down from 9.05/15 percent.

A bond maturing on 01.09.2023 was quoted at 9.05/15 percent up from 8.95/9.00 percent.

A bond maturing on 15.09.2024 was quoted at 9.25/33 up from 9.10/15 percent on Friday.

A bond maturing on 15.10.2027 was quoted at 09.55/65 percent up from 09.45/50 percent.

A bond maturing on 15.05.2030 was not quoted in early trade.

A bond maturing on 15.09.2034 was also not quoted. It closed at 10.00/40 percent in its last close. (Colombo/ Mar30/2020)

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