Sri Lanka rupee quoted weaker, bond yields up
ECONOMYNEXT- Sri Lanka’s rupee was quoted weaker at 182.40/50 to the US dollar in the spot market on Monday while bond yields gained, dealers said.
The rupee ended at 181.85/00 to the greenback on Tuesday.
In the government securities market, bond yields gained in active trade while 2024 maturities remained the most liquid, dealers said.
Dealers said there was considerable selling pressure in the market.
World oil prices crashed on Monday, fueling a vicious selloff on stock markets that were already buckling from the spreading coronavirus outbreak.
Stocks tanked as the global oil market nosedived 30 percent at one stage after top exporter Saudi Arabia slashed the prices it charges customers following a bust-up with Russia over crude production cuts.
As the coronavirus claims more lives around the world, dealers are shedding riskier assets for safe haven investment, sending gold and the yen surging and pushing US Treasury yields to record lows while the dollar was broadly lower against the yen, euro and other currencies, reported AFP.
While governments and central banks have unleashed, or are preparing to unleash, stimulus measures, the spread of COVID-19 is putting a huge strain on economies and stoking concerns of a worldwide recession.
A bond maturing on 15.12.2021 was quoted at 8.80/9.00 percent on Monday, up from 8.50/60 percent at Friday’s close.
A bond maturing on 01.09.2023 was quoted at 9.30/40 percent, climbing from 9.25/35 percent at the previous day’s close.
A bond maturing on 15.09.2024 was quoted at 9.60/65 percent on Monday, from 9.42/48 percent at Friday’s close.
A bond maturing on 15.10.2027 was quoted at 9.80/10.00 percent up from 9.58/68 percent.
A bond maturing on 15.05.2030 was quoted at 9.85/10.15 percent on Monday, gaining from 9.70/90 percent at Friday’s close.
A bond maturing on 15.09.2034 was quoted at 9.85/25 percent, climbing from 9.85/10 percent at the previous day’s end. (Colombo/ Mar10/2020)
Kithmina Hewage- Institute of Policy Studies