ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 176.40/50 to the US dollar in the spot market on Thursday and gilt yields edged up, dealers said.
The rupee closed at 176.30/40 to the US dollar in the spot market on Wednesday.
Overnight liquidity in money markets grew to 25.22 billion rupees on Thursday from 22.11 billion rupees on Wednesday.
The central bank mopped up 7.57 billion rupees through a repo auction at 8.55 percent.
The bond market was moderately active with yields gaining amid foreign selling, dealers said.
Foreign selling centered on the 2021 bonds, dealers said.
The markets are expecting a policy interest rate cut tomorrow, amid slow growth and private credit.
A bond maturing on 15.12.2021 closed at 9.40/45 percent on Thursday, up from 9.35/45 percent at Wednesday’s close.
A bond maturing on 15.03.2023 closed at 9.83/88 percent, gaining from 9.80/83 percent.
A bond maturing on 15.03.2024 closed at 9.97/10.02 percent, up from 9.92/97 percent.
A bond maturing on 01.08.2026 closed at 9.25/32 percent, up from 10.22/28 percent.
A bond maturing on 15.01.2027 closed at 10.30/37 percent on Thursday, up from 10.28/35 percent at the previous close.
A 10-year bond maturing on 01.05.2029 closed at 10.45/52 percent, easing from 10.46/50 percent. (COLOMBO, 30 May 2019)