Sri Lanka gilt yields edge up, rupee weaker

ECONOMYNEXT – Sri Lanka’s bond yields went up marginally Thursday while the spot market only saw sporadic activity with the rupee under pressure amid market uncertainty, dealers said.

The rupee had traded around 186.70 to the US dollar in sporadic trade, dealers said and closed around 186.7/188.70 to the US dollar. Wide quotes represent uncertainty.

One week dollars were priced around 188.20 dealers said.

Sri Lanka’s recent rate cut and liquidity injections had raised concerns over the rupee.

Sri Lanka’s stock markets are closed due to a Coronavirus holiday.

In the secondary government securities market, yields edged up in dull trading, dealers said.

Dealers also said that the 2024 maturities were more liquid.

A bond maturing on 15.12.2021 was quoted at 8.75/95 percent up from 8.65/80 percent on Wednesday.

A 2-year bond maturing on 01.10.2022 was quoted at 9.05/15 percent up from 9.03/07 percent.

A bond maturing on 01.09.2023 was quoted at 9.35/50 percent down from 9.30/40 percent.

A bond maturing on 15.09.2024 was quoted at 9.65/75 down from 9.58/65 percent on Wednesday.

A bond maturing on 15.10.2027 was quoted at 09.90/10.00 percent up from 09.80/90 percent.

A bond maturing on 15.05.2030 was not quoted in early trade.

A bond maturing on 15.09.2034 was also not quoted. It closed at 10.00/40 percent on Friday. (Colombo/ Mar19/2020)