Sri Lanka rupee firmer, bond yields gain

ECONOMYNEXT- Sri Lanka’s rupee closed slightly stronger at 181.42/47 to the US dollar in the spot market on Wednesday while bond yields gained marginally, dealers said.

The rupee closed at 181.45/55 to the greenback on Tuesday.

Liquidity in the overnight money market was 19.19 billion rupees, up from 17.79 billion rupees at yesterday’s close.

Banks deposited 22.73 billion rupees at Central Bank’s excess liquidity window.

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

Dealers said the 3-month maturities fell marginally by a basis point and the rest of the maturities picked up.

The Public Debt Department sold three-month bills at an average weighted yield of 7.36 percent on Wednesday, falling from 7.37 percent a week earlier.

Six-month bills were sold at 8.04 percent, up from 7.99 percent a week earlier, while 12-month bills climbed to 8.55 percent from 8.42 percent.

At the bill auction, the Public Debt Office sold 29.5 billion rupees in securities, the full amount on offer, after receiving 76 billion rupees in bids.

The auction will be settled on February 14.

In the secondary government securities market, bond yields picked up in moderate trade, where the 2024 bond maturities remained the most liquid, a dealer said.

A bond maturing on 15.12.2021 closed at 8.80/95 percent on Wednesday, climbing from at 8.60/80 percent at Tuesday’s close.

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

A bond maturing on 15.09.2024 closed at 9.47/50 percent on Wednesday, up from 9.45/50 percent yesterday’s close.

A bond maturing on 15.10.2027 closed at 9.62/69 percent, gaining from 9.60/68 at yesterday’s close.

A bond maturing on 15.05.2030 closed at 9.85/95 percent, up from 9.65/85 percent.

A bond maturing on 15.09.2034 closed at 9.75/10.00 percent, gaining from 9.65/95 percent. (Colombo/Feb12/2020)

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