Sri Lanka rupee ends weaker, bond yields up

ECONOMYNEXT – Sri Lanka’s rupee closed weaker at 177.15/20 against the US dollar on Thursday, while bond yields were higher, dealers said.

The rupee closed at 177.05/15 against the greenback on Thursday.
 
The central bank injected 6.8 billion rupees in liquidity into the money market at 7.75 percent through an overnight reverse repo auction and 2.55 billion rupees through a term reverse repo auction at 7.79 percent.
 
Another 3 billion rupees were injected at 7.767 through a term reverse repo which matures on August 19.
 
Liquidity in the overnight money market was 7.20 billion rupees, down from Thursday’s 34.61 billion rupees, as the central bank wound down its holdings of Treasury bonds down to 77.84 billion rupees from 106.09 rupees.
 
In the secondary bond market, bond yields were up.
 
Dealers said foreign selling pushed the yields up by 10-15 basis points.
 
A bond maturing on 15.10.2021 closed at 8.90/00 percent on Friday up from 8.75/85 percent at Thursday’s close.
 
A bond maturing on 15.03.2023 closed at 9.60/70 percent, up from 9.45/55 percent.
 
A bond maturing on 15.06.2024 closed at 9.90/00 percent, stable from 9.90/95 percent.
 
A bond maturing on 01.08.2026 closed at 10.02/12 percent, up from 10.00/10.10 percent.
 
A bond maturing on 15.01.2027 closed at 10.10/17 percent, up from 10.05/10.15 percent.
 
A bond maturing on 01.05.2028 closed at 10.10/20 percent unchanged from yesterday’s close.
 
A 20-year bond maturing on 15.08.2039 closed at 10.20/35 percent, down from 10.30/50 percent.
 
(COLOMBO, 17 August 2019)