Sri Lanka rupee closes weaker, bond yields fall
Friday August 16, 2019 06:55:00
ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 177.05/15 against the US dollar on Thursday, while bond yields were higher, dealers and brokers said.
The rupee closed at 176.90/00 against the greenback on Tuesday.
Wednesday was a market holiday.
The central bank has been injecting liquidity into the overnight money market.
An overnight reverse repo auction injected 5.4 billion rupees at 7.76 percent and 20 billion rupees through a term reverse repo auction at 7.78 percent
The central bank also bought 1.25 billion rupees in Treasury Bonds outright.
Liquidity in the overnight money market was 34.61 billion rupees, up from Tuesday’s 27.49 billion rupees.
In the secondary bond market, yields were marginally up.
Dealers said foreign selling pushed the yields up.
A bond maturing on 15.10.2021 closed at 8.75/85 percent on Thursday, up from 8.63/70 percent at Wednesday’s close.
A bond maturing on 15.03.2023 closed at 9.45/55 percent, up from 9.35/45 percent.
A bond maturing on 15.06.2024 closed at 9.90/95 percent, up from 9.78/80 percent.
A bond maturing on 01.08.2026 closed at 10.00/10.10 percent, up from 9.87/95 percent.
A bond maturing on 15.01.2027 closed at 10.05/10.15 percent, up from 9.95/00 percent.
A bond maturing on 01.05.2028 closed at 10.10/10.20 percent, up from 9.98/08 percent.
A 20-year bond maturing on 15.08.2039 closed at 10.30/50 percent, wider from 10.05/35 percent.
(COLOMBO, 15 August 2019)