Sri Lanka rupee ends weaker, gilt yields unchanged

ECONOMYNEXT- Sri Lanka rupee closed weaker at 181.45/55 percent to the US dollar in the spot market on Tuesday while bond yields remained unchanged, dealers said.

The rupee closed at 181.40/42 to the greenback on Monday.

Liquidity in the overnight money market was 17.79 billion rupees, marginally falling from 17.80 billion rupees at Monday’s close.

Banks deposited 21.37 billion rupees through Central Bank’s excess liquidity window.

There were no repo auctions for the day.

In the secondary government securities market, bond yields were stable with dull trade, where the 2024 bond was the most liquid, a dealer said.

Sri Lanka’s debt office is offering 29.5 billion rupees in a weekly auction to be held tomorrow split in to 7.5 billion rupees maturing in 3-months, 7.00 billion rupees maturing in 9-monthsa and 15.00 billion rupees maturing in 12-months.

Dealers said they expected the auction rates to fall given liquidity in the overnight money market.

A bond maturing on 15.12.2021 closed at 8.60/80 percent on Tuesday unchanged from yesterday’s close.

A bond maturing on 01.09.2023 closed at 9.10/20 percent, easing from 9.15/25 percent at yesterday’s close.

A bond maturing on 15.09.2024 closed at 9.45/50 percent on Tuesday, gaining from 9.43/48 percent yesterday.

A bond maturing on 15.10.2027 closed at 9.60/68 percent, stable from 9.60/70 percent.

A bond maturing on 15.05.2030 closed at 9.65/85 percent.

A bond maturing on 15.09.2034 closed at 9.65/95 percent, also holding at the same levels since the last closing. (Colombo/Feb11/2020)