Sri Lanka rupee ends firmer, gilt yields edge up
ECONOMYNEXT- The Sri Lanka rupee closed stronger at 180.35/45 to the US dollar on Tuesday, while bond yields gained, brokers and dealers said.
The rupee closed at 180.50/60 against the greenback in the spot market on Monday.
The liquidity shortage in the overnight money market rose -12.66 billion rupees from -9.58 billion rupees on Monday.
The Central Bank injected 15.00 billion rupees in an overnight reverse repo auction at 7.40 percent and 10 billion rupees in 7-day money at 7.4 percent.
It also will be injecting 5.5 billion rupees at 7.45 percent through a 14 day term reverse repo auction be settled on Wedenesday.
The state debt office on Wednesday will sell 115 billion rupees in Treasury Bonds, in 5 and 15 year maturities.
In a weekly bill auction held on Tuesday, 12-month bill yield rose 03 basis points to 8.36 percent.
The public debt department sold 12 billion rupees of 01-year bills, having offered 19 billion rupees worth of bills.
It accepted more than what was offered in the shorter tenors.
The 03-month bill yield fell 02 basis points to 7.61 percent while the 06-month bill yield rose 05 bp to 7.75 percent from the last auction they were accepted on 28 August.
In the secondary bond market, gilt yields edged up marginally in moderate trading, dealers said.
A bond maturing on 15.10.2021 closed at 8.85/9.00 percent on Tuesday, up from 8.75/85 percent at Monday’s close.
A bond maturing on 15.03.2023 closed at 9.80/90 percent, gaining from 9.70/80.
A bond maturing on 15.06.2024 closed at 10.12/17 percent, up from 10.02/10 percent.
A bond maturing on 01.08.2026 closed at 10.13/22 percent, edging up from 10.08/18 percent.
A bond maturing on 15.01.2027 closed at 10.15/25 percent, up from 10.10/25 percent.
A bond maturing on 01.05.2028 closed at 10.15/30 percent, up from 10.10/25.
A 20-year bond maturing on 15.08.2039 closed at 10.15/40 percent, stable from 10.15/35 percent. (COLOMBO, 10 September 2019)