Sri Lanka gilt markets see activity after record auction – Update

COLOMBO (EconomyNext) – Sri Lanka’s bond markets saw active trading in a 7–year bond after Tuesday’s auction which raised 51 billion rupees with some quotes also seen for longer tenors, dealers said.

A 7-year bond maturing in 2022 closed at 9.30/50 percent levels after trading at between 9.40 to 9.10 percent after the auction.
The debt office sold 18.24 billion rupees of 2022 bonds Tuesday after offering 10 billion rupees at a weighted average yield of 9.17 percent.

The cut-off or the highest 7-year level bonds bids were accepted was believed to have been around 9.75 percent.

The closing price of 9.30/50 percent compared with 7.80/85 percent for the 2022 seen in February 24 when a monetary policy statement was issued.

A 10-year bond which was sold at a weighted average yield of 10.09 percent Tuesday was quoted around 10.00/20 percent. The auction cut-off was estimated to as much as 10.75 percent.

Earlier comparable quotes were not available and the exact maturity is a new issue.

A 20-year bond where the weighted average yield was 11.20 percent at the auction was quoted around 10.75/11.20 percent. The cut-off was believed to have been around 11.30 percent.

A total of 51.2 billion rupees of bonds were sold in 7, 10, and 20 year maturities at Tuesday’s auction after calling bids for 30 billion rupees.

The auctions are ahead of a 79.3 billion rupee bond maturity on March 15. Another 20 billion rupee bond auction was announced Tuesday with bids to close on March 12.

Bids would close on March 12 for 10 billion rupees of 3 year bonds maturing on 01 June 2018 and 10 billion rupees for 8-year bonds maturing on September 2023.





Three year bonds maturing on 01 April 2018 were quoted around 8.00/50 and another bond maturing on 15 August 2018 was quoted around the same levels, dealers said.

Two weeks ago they were around around 7.30/50 levels.

Closer to 10 year a 01 January 2024 bond were quoted around 8.15/25 levels two weeks ago and there were bids around 10 percent, Tuesday, dealers said.

There is a 20 billion rupees Treasury bill auction today where dealers expect yeilds to move up . One year bills were sold last week at at an average 6.99 percent with secondary markets traded around 6.90 to7.2 levels with a cut-off of 7.50 percent. There are no quotes today, dealers said.

Update II

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