Sri Lanka rupee ends weaker, gilt yields edge up

ECONOMYNEXT – Sri Lanka’s rupee ended weaker at 176.90/00 against the US dollar on Tuesday while bonds closed marginally up following auction a bill auction, dealers said.

The rupee closed at 176.80/85 against the greenback on Friday.
 
Monday was a market holiday. 
 
Liquidity in the overnight market was 27.49 billion rupees, up from 22.42 billion rupees.
 
The central bank injected up 2.35 billion rupees in an overnight reverse repo auction at 7.70 percent.
 
Sri Lanka’s 3 and 12 month Treasuries yields edged up slightly and less than the total offered volume was sold at Tuesday’s auction, data from the state debt office showed.
 
Sri Lanka’s Treasuries yields fell steadily from February 2019, after monetary instability returned and capital flight ended. Rates fell as private credit weakened, despite government revenues falling.
 
The bill auction was moved forward to Tuesday as Wednesday too is a holiday.
 
In the bond market, yields went up marginally in an active market following the auction, dealers said.
 
A bond maturing on 15.10.2021 closed at 8.63/70 percent on Tuesday up from 8.55/62 percent at Friday’s close.
 
A bond maturing on 15.03.2023 closed at 9.35/45 percent, up from 9.30/35 percent.
 
A bond maturing on 15.06.2024 closed at 9.78/80 percent, up from 9.72/76 percent.
 
A bond maturing on 01.08.2026 closed at 9.87/95 percent, down from table at 9.90/94 percent.
 
A bond maturing on 15.01.2027 closed at 9.95/00 percent, stable from Friday’s closing.
 
A bond maturing on 01.05.2028 closed at 9.98/08 percent, stable from 9.98/10.02 percent.
 
A 20-year bond maturing on 15.08.2039 closed at 10.05/35 percent, stable from 10.05/10.25 percent.
 
(COLOMBO, 13 August, 2019)