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Sri Lanka bonds market see activity amid foreign selling

ECONOMYNEXT – Sri Lanka’s bond markets were active on small volumes with sporadic foreign selling on some maturities, ahead of a Treasury bill auction, dealers said.

The 12-month Treasuries yield rose to 7.87 percent last week, from 7.80 three after all bids were rejected two weeks ago.

Bond yields have eased from the highs seen in the run up to a bond auction on February 05, despite foreign selling. Selling was seen on 2021 2023 bonds, dealers said.

Foreign sales of bonds eased in December but picked up over January. Foreign bond holding were stable around 303 billion rupees up to December 30, according to official data. In the week to February three holdings fell from 289 billion rupees to 284 billion.

In forex the rupee is not traded in the spot market with an indicative rate of 143.95/144.15 to the US dollar. One week forwards were quoted around 14.28/32 to the US dollar Tuesday.

Selected quotes for somewhat active bonds Tuesday:

2-year bonds maturing on 01.04.2018 quoted 9.25/40 percent

3-year bonds maturing on 01.07.2019 9.85/95 percent

4-year bonds maturing on 01.08.2021 quoted at 10.46/52 percent

7-year bonds maturing on 01.09.2023 quoted at 10.75/80 percent





10-year bonds maturing on 01.06.2026 quoted at 11.05/10 percent
14-year bonds maturing on 15.05.2030 quoted at 11.40/45 percent, after falling to as low as 11.05 percent after the last auction.

25-year bonds maturing on 01.01.2041 quoted at 11.55/65 percent down. They were auctioned at an average yield of 12.15 percent. (Colombo/Feb09/2016)

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