Sri Lanka bonds spike on political uncertainty, rupee steady
ECONOMYNEXT – Sri Lanka rupee closed steady Monday but bonds spiked on political uncertainty as two Muslim governors resigned as protests against them gathered pace, fueling speculation of early elections, dealers said.
The rupee ended around 176.45/60 to the US dollar.
Bonds spiked in late afternoon trade as two Muslim provincial governors who were targeted by a fasting monk resigned. Muslim ministers of the government also resigned after markets closed but said they will remain back-benchers.
Bond yields gain 15 to 20 basis points in the last two hours of trading as speculation of ministers resigning spread.
A bond maturing on 15.12.2021 closed at 9.50/60 Monday up from Friday’s closing of 9.35/45 percent.
A bond maturing on 15.03.2023 closed at 10.00/10 percent up from 9.85/90 percent, Friday.
A bond maturing on 15.03.2024 closed at 10.10/20 percent up from 9.97/10.01 percent.
A bond maturing on 01.08.2026 closed at 10.45.60 percent, up from 10.25/33 percent.
A bond maturing on 15.01.2027 closed at 10.50/60 percent up from 10.36/40 percent on Friday.
A 10-year bond maturing on 01.05.2029 closed at 10.55/65 percent up from 10.45/49 percent.
Colombo stock also closed lower. (Colombo/June03/2019)
Economic Intelligence Unit of the Ceylon Chamber of Commerce
Jehan Perera - Executive Director National Peace Council