Sri Lanka gilt yields down as sovereign bond launched

ECONOMYNEXT- Sri Lanka’s rupee opened flat 176.75/85 percent to the US dollar in the spot market on Monday while bond yields eased as government launched a second sovereign bond sale for the year, dealers said.

The rupee closed at 176.75/85 against the greenback on Friday.

Citi, Deutsche Bank, HSBC, J.P. Morgan, SMBC Nikko, StanChart and BOC International have begun selling 5 and 10 year bonds, international markets, Bloomberg Newswires said, with initial price guidance of 6.60 percent for 5 year bonds and 7.8 percent for 10 year bonds.

Last week state-run SriLankan Airlines sold a 175 million dollar 5-year bond for 7.00 percent with a sovereign guarantee.

Sri Lanka has said it may raise up to 2.5 billion US dollars for cashflows approved for this years budget. Later up to another two billion dollars may be raised to manage debt in 2020, which would be an election year.

Dealers said the gilt yields in the secondary market eased ahead of the sovereign bond sale of 5- and 10-year sovereign bonds in the international markets.

A bond maturing on 15.10.2021 was quoted at 9.37/42 percent, easing from 9.45/50 percent at Friday’s close.

A bond maturing on 15.12.2021 was quoted at 9.45/50 percent, down from 9.48/53 percent.

A bond maturing on 15.03.2023 was quoted flat at 9.85/93 percent.

A bond maturing on 15.03.2024 was quoted at 9.98/10.02 percent, falling from 10.05/10 percent.





A bond maturing on 01.08.2026 was quoted at 10.22/30 percent, down from 10.25/33 percent.

A bond maturing on 15.01.2027 was quoted at 10.28/35 percent, declining from 10.36/42 percent.

A 10-year bond maturing on 01.05.2029 was quoted at 48/52 percent, down from 10.50/56 percent.

In equities, Colombo’s All Share price Index was 2.46 points at 5,365.90 and the S&P SL20 of more liquid stocks gained 0.01 percent, or 0.13 points to 2,489.11, in the first hour of trade.

The market turnover was 2.5 million rupees with 20 stocks gaining and 10 declining.

Vallibel One PLC gained 60 cents to 15.40 rupees a share and Peoples Leasing and Finance PLc was 40 cents up at 14.40 rupees a share, contributing to ASPI gain. (COLOMBO, 24 June 2019)

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