Sri Lanka rupee ends firmer, gilt yields ease amid sovereign bond launch

ECONOMYNEXT- Sri Lanka’s rupee closed firm at 176.50/55 percent against the US dollar in the spot market on Monday while bond yields eased, dealers said. 

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

Liquidity in the overnight money market was up at 20.33 billion rupees from 16.14 rupees on Friday.

Central Bank has mopped up 10 billion rupees at 7.72 percent via an overnight repo auction.

In the secondary market, bond yields eased with the launch of a the second sovereign bond of 2019 on Monday, dealers said.

The central bank had said that it would be raising 2.5 billion US dollars through the international second sovereign bond, while another 2 billion US dollars would  be raised later in the year.

There is now downward pressure on secondary market bond yields, dealers said.

Monday’s activity centered on the short end of the curve with all three 2021 maturities being the most liquid, dealers said.

A bond maturing on 15.10.2021 closed at 9.38/43 percent on Monday. down from 9.45/50 percent at Friday’s close.

A bond maturing on 15.12.2021 closed at 9.45/50 percent, falling from 9.48/53 percent.

A bond maturing on 15.03.2023 closed at 9.82/88 percent, easing from 9.85/93 percent.

A bond maturing on 15.03.2024 closed at 9.98/10.03 percent, declining from 10.05/10 percent.

A bond maturing on 01.08.2026 closed at 10.23/30 percent, easing from 10.25/33 percent. 

A bond maturing on 15.01.2027 ended at 10.28/35 percent, falling from 10.36/42 percent.

A 10-year bond maturing on 01.05.2029 ended at 10.45/52 percent, down from 10.50/56 percent. (Colombo/Jun24/2019)