Sri Lanka g-secs flat amid sovereign bond repayment, rupee weaker
ECONOMYNEXT – Sri Lanka’s bond yields flat and the rupee was slightly weaker on Monday as Sri Lanka repays a billion US dollar international sovereign bond, while stocks were flat, dealers said.
The rupee was quoted at 182.00/15 to the US dollar in the first hour of trading, slightly weaker than the Friday’s close of around 181.90/10 to the dollar.
The rupee had generally strengthened from lows near 183 seen in late December, but a liquidity short had increased to 168.9 billion rupees by the week ending January 11 from 152.8 billion a week earlier, amid a contraction is reserve money, data showed.
A Treasury bill stock held by the central bank also rose to 100 billion rupee Friday, from 68 billion rupees on Thursday, ahead of a payment of a billion dollar sovereign bond on Monday.
Sri Lanka had about 700 million US dollars of fiscal reserves to repay the bond, the central bank said last month. The balance of part may come from monetary reserves. State-run Bank of Ceylon had floated a syndicated loan to raise part of the fund.
Rupee bond markets were largely unchanged Monday morning after falling last week, dealers said.
A bond maturing on 15.12.2021, was quoted at 11.10/20 percent Monday around the same level from Friday’s 11.10/25 percent.
A bond maturing on 15.12.2023, which was first auctioned last week was quoted 11.43/50 percent Monday from Friday’s 11.45/50 percent.
A bond maturing on 15.05.2023, was quoted at 11.40/50 percent.
A 6-year bond maturing on 15.03.2025 bond was quoted around at 11.55/11.65, flat from Friday’s close
A bond maturing on 01.08.2026 bond was quoted around at 11.55/11.65 flat from Friday’s close. (Colombo/Jan14/2019)