Sri Lanka rupee opens stable, bond yields ease after sovereign bond sale

ECONOMYNEXT – Sri Lanka’s rupee opened steady at 176.50/60 to the US dollar in the spot market on Tuesday while bond yields eased, dealers said.

The rupee closed at 176.50/55 against the greenback on Monday.

Sri Lanka has raised 2.0 billion US dollars from 5- and 10-year sovereign bonds in the second such sale in 2019.

The central bank had said it would raise 2.5 billion US dollars through the international second sovereign bond, while another 2 billion US dollars would be raised later in the year.

Sri Lanka has so far raised 4.4 billion US dollars of sovereign bonds in 2019. It had also repaid 1.5 billion US dollars of maturing sovereign bonds.

In the secondary market, bond yields were easing from buying pressure in an active market, dealers said.

Tuesday’s activity covered the short, mid and long end of the yield curve with 2021, 2023 and 2024 maturities being the most liquid, dealers said.

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A bond maturing on 15.10.2021 was quoted at 9.30/38 percent, easing from 9.38/43 percent at Monday’s close.

A bond maturing on 15.12.2021 was quoted at 9.35/42 percent, falling from 9.45/50 percent.

A bond maturing on 15.03.2023 was quoted at 9.80/88 percent, down from 9.82/88 percent.

A bond maturing on 15.03.2024 was quoted at 9.95/10.00 percent, declining from 9.98/10.03 percent.

A bond maturing on 01.08.2026 was quoted at 10.20/25 percent, easing from 10.23/30 percent.

A bond maturing on 15.01.2027 was quoted at 10.27/35 percent, down from 10.28/35 percent.

A 10-year bond maturing on 01.05.2029 was quoted at 10.45/50 percent, steady from 10.45/52 percent.

In equities, Colombo’s All Share Price Index gained 0.02 percent or 1.08 points to 5,355.61 and the S&P SL20 of more liquid stocks was up 0.23 percent or 5.69 points at 2,495.31, in the first one and half hour of trading.

The market turnover was 101 million rupees with 30 stocks gaining and 22 declining.

Sampath Bank PLC was up 1.90 rupees to 139.90 rupees a share, People’s Leasing and Finance PLC was 20 cents up at 14.20 rupees a share and Union Assurance PLC gained 5.00 rupees to 305.00 rupees a share, contributing to the ASPI’s gain.

Aitken Spence and Sampath Bank PLC contributed 81 percent to the market turnover.
(COLOMBO 25 June, 2019)