Sri Lanka rupee ends weaker, bond yields gain

rupee notes

ECONOMYNEXT- Sri Lanka’s rupee ends weaker at 181.50/60 to the US dollar in the spot market on Monday while bond yields gained, dealers said.

The rupee closed at 181.45/52 to the greenback on Friday.

In the overnight money market, liquidity was 0.52 billion rupees, down from 13.65 billion rupees at Friday’s close.

Central Bank also injected 15.00 billion rupees in an overnight reverse repo auction at 6.97 percent.

In another auction, Central Bank offered a term repo of 15 billion rupees at 7.07 percent maturing in 14 days to be settled tomorrow.

Banks deposited 21.79 billion rupees in Central Bank’s excess liquidity window.

In the secondary government securities market, bond yields gained today in moderate while 2024 maturities remained liquid.

Dealers said the foreign investors were seen to be exiting the market as a reaction to the supplementary budget last week.

Sri Lanka is seeking parliamentary approval to spend 156 billion rupees more and raise up to 357 billion rupees in gross debt, in a supplement to a vote-on-account or a mini-budget running up to April 2020.

The original vote on account estimated revenues at 745 billion rupees and total outflows including spending and debt repayment at 1,470 billion rupees.

A bond maturing on 15.12.2021 closed at 9.00/15 percent on Monday, up from 8.80/9.00 at Friday’s close.

A bond maturing on 01.09.2023 closed at 9.40/48 percent, gaining form 9.25/35 percent at the previous close.

A bond maturing on 15.09.2024 closed at 9.65/70 percent, up from 9.57/63 percent at last week’s close.

A bond maturing on 15.10.2027 closed at 9.75/90 percent on Monday, climbing from 9.70/85 percent.

A bond maturing on 15.05.2030 closed at 9.90/10 percent, gaining from 9.85/10.00 percent from last week’s close.

A bond maturing on 15.09.2034 closed at 9.85/10.05 percent, up from 9.85/10.05 percent at Friday’s close.
(Colombo/Feb17/2020)